The government faces making a loss of more than £100m if drilling at the UK’s largest undeveloped oil field is approved, according to new research examining a tax break introduced by Rishi Sunak.
Sunak performed a dramatic U-turn last May when he introduced the “energy profits levy” as chancellor – effectively a windfall tax on energy producers. However, he also introduced a very generous tax break for fossil fuel producers to ensure that “the more investment a firm makes, the less tax they will pay”.
