Budget Resolution No. 14: Energy (oil and gas) profits levy (period for which levy has effect)

What happened: On 6 November 2024, the House of Commons voted on Budget Resolution No. 14, which concerned extending the energy profits levy (commonly called the windfall tax on oil and gas companies) until March 2030, rather than allowing it to expire in March 2028. The resolution passed by 450 votes to 120, a majority of 330.

Why it matters: The extension means oil and gas companies operating in the UK, primarily in the North Sea, will face the additional levy on their profits for two further years beyond the original end date. The windfall tax, introduced in 2022 in response to soaring energy profits following Russia's invasion of Ukraine, raises revenue for the Treasury. Extending it to 2030 is designed to capture additional public revenue during a period when the government is seeking to fund public services and reduce borrowing. The flip side is that critics argue the longer timeframe increases uncertainty for energy companies considering long-term investment in domestic oil and gas production, which could affect energy security and jobs in the sector.

The politics: The vote divided almost entirely along party lines. Labour (including Labour and Co-operative members), Liberal Democrats, the Greens, and Plaid Cymru all voted in favour, reflecting a broad left and centre-left coalition behind the measure. Conservatives, the Scottish National Party, Reform UK, and the Democratic Unionist Party all voted against, though for different reasons: Conservatives and Reform emphasised investment uncertainty, while the SNP's opposition is notable given Scotland's particular stake in the North Sea oil and gas industry. The SNP's no vote reflects longstanding tensions over how North Sea revenues are managed and concerns about Scottish energy sector jobs. The result was never in doubt given Labour's commanding majority, but the scale of cross-opposition resistance illustrates how energy taxation remains a sharply contested issue.