UK rules out windfall tax on North Sea oil firms to help fund energy bills

The expansion of offshore windfarms is likely to be opposed by some residents and campaign groups. Photograph: Islandstock/Alamy

The business secretary has effectively ruled out a windfall tax on North Sea oil firms to fund discounted energy bills but promised much greater investment in solar panels, wind and nuclear to reduce reliance on Russian oil and gas.

Speaking amid reports of a cabinet split over landmark energy security plans due to be published within days, Kwasi Kwarteng offered up a tax on oil companies, backed by Labour, as the one policy that definitely will not find favour with ministers.