The windfall tax on North Sea operators could bank up to £28billion for the UK Government.

The “energy profits levy” announced by Rishi Sunak earlier this year was originally expected to raise around £5billion a year by taxing the earnings of North Sea operations, or a total of £20billion by 2025/26.

But official estimates now show the levy – charged in addition to £22million corporation tax companies are paying per day – is now expected to bring in £28billion overall, as surging oil and gas prices fuel a bonanza for the industry.

That includes £7.7billion in 2022/23, then £10.4billion, £6.4billion and £3.5billionn in the following years, although the government said volatile markets made it hard to give firm predictions.

It means the levy’s total haul could amount to nearly half of the cost this winter of Liz Truss’s support package to help households and businesses weather rising energy bills.

Ryan Crighton, Policy Director at Aberdeen & Grampian Chamber of Commerce, said: “The North Sea has become an easy target for populist politicians keen for a quick headline.

“However, it is quite clear from these figures that the North Sea is picking up a large part of the tab for the measures announced by the Chancellor. People calling for any further windfall now risk taxing the sector into oblivion.

“This £28billion is on top of the £22million per day that oil and gas operators are paying in corporation tax, so it is a double windfall for the Treasury."

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