The UK Government is withholding key data on the North Sea windfall tax amid mounting speculation it has created another financial black hole for Chancellor Rachel Reeves.
Labour increased tax on oil and gas production to 78% last year - despite warnings from industry that it would decimate investment - to help fund the creation of Great British Energy.
But with job losses mounting, the government has failed to publish Energy Profits Levy (EPL) receipts for the third consecutive month - raising further questions about how it plans to finance its flagship policy.
Historically published quarterly, the data has now been conspicuously absent from HMRC’s monthly tax receipts since April, with no official explanation for the delay.
Sheena McGuinness, Co-Head of Energy and Natural Resources at RSM UK, said the lack of updated figures raises serious questions.
"It is interesting to note that the Energy Profits Levy (EPL) data has not been updated since January 2025. Prior to the current hiatus, this was generally released every quarter," she said.
"There has been no explanation as to why this data has been withheld but given the fanfare around the increase in the EPL rate being the primary source of funding for Great British Energy, which per the last set of published figures did not stand up to scrutiny, the lack of transparency around this data set does raise questions.”
The government has pledged to invest £8.3billion of new money into Great British Energy over the course of this parliament. That was expected to be raised through the extended windfall tax on oil and gas firms.
However, Ms McGuinness has previously flagged that windfall tax revenues have been on a “steady decline since its inception” with the most recent figures from 2024 showing a 29% drop between the same period in 2023.
“The historical trends support concerns about the shrinking tax base and cast further doubt on the assertion of a £1.2billion per annum uplift in windfall tax revenues which the government have ear marked to fund GB Energy," she said.
Falling receipts would mean another headache for Chancellor Rachel Reeves after the recent reversal of welfare reforms blew a £5billion black hole in her financial plans.
Russell Borthwick, Chief Executive at Aberdeen & Grampian Chamber of Commerce, has urged the chancellor to end the Energy Profits Levy and unlock investment in the North Sea.
He said: "The UK can create the conditions where half of our domestic oil and gas demand can be met from the North Sea, instead of a quarter on current trajectory. This would generate an additional £165 billion of GVA.
"By contrast, imported oil and gas does not support jobs in our domestic economy, generates no equivalent tax revenue and – in the case of rising levels of imported LNG – can be four times more carbon intensive.
"The government's own Energy Trends Report shows the imperative to maximise what production from the UKCS as imports surge and domestic production drops. Imports of gas have increased by 19% this year, while domestic production has dropped 20% compared to pre-pandemic levels. LNG imports for the period increased by 42% compared on last year.
"The North Sea can be an investible proposition that can drive economic growth, sustain jobs and drive forward the energy transition. The key policy lever remains the removal of the Energy Profits Levy as soon as practicable."