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Scotland 'Bankrolling' UK-wide Windfall Tax
NEW DATA SHOWS £1,800 PER HOUSEHOLD WITH INDEPENDENCE
Gordon MP Richard Thomson has highlighted evidence which shows that Scotland will “bankroll” the UK-wide windfall tax that has been announced in response to the Conservative Government’s cost-of-living crisis – as new data revealed around 90% of the funds raised from the Energy Profits Levy will be taken from Scotland.
House of Commons Library analysis shows that, with 90% of UK oil and gas sales income coming from Scottish waters at the last count in 2019, around £4.5billion of the £5billion the UK government estimates its windfall tax will raise is set to come from Scotland.
The analysis reveals that if that £4.5billion of Scottish income was retained and used in Scotland, rather than taken by the Treasury and distributed across the UK, every Scottish household could receive £1,800 each towards their energy bills.
Commenting, Richard Thomson MP said:
“This is further proof if any were needed that Scotland more than pays its way in the UK. In fact, it’s the ‘broad shoulders’, to borrow a phrase, of Scottish industry which seems to be keeping the UK afloat.
“Scotland’s huge energy resources could deliver £1800 for every Scottish household but we will only get a small fraction of that under Westminster control.
“It’s deeply ironic that this latest Westminster ‘cash grab’ follows hard on the heels of the UK Government taking money away from Scotland's communities by failing to replace £150million of EU funding, scrapping £1billion of carbon capture and storage investment, and refusing to match the Scottish Government's £500million just transition fund for the North-east. And done so whilst Westminster refuses to invest in the North-east’s carbon capture projects.
“It’s clear that the UK Government is not making decisions which are in the best interests of the people of Scotland – or our businesses for that matter – and these decisions would be better made in Scotland mindful of the people who live here.”
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Notes for Editors:
1. The UK government estimates that the Energy Profits Levy will raise £5 billion in its first 12 months: https://www.gov.uk/government/publications/cost-of-living-support/energy-profits-levy-factsheet-26-may-2022
2. In 2019, around 90% of UK oil and gas sales income came from Scottish waters (see Table 2.1 of Scottish Government’s Oil and Gas Production statistics 2019: https://www.gov.scot/publications/oil-and-gas-production-statistics-2019/).
3. There are 2.51million households in Scotland: https://www.nrscotland.gov.uk/statistics-and-data/statistics/statistics-by-theme/households/household-estimates/2020
4. £4.5 billion shared among 2.51million households is around £1,800 per household
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