Reforming the Energy Profits Levy (EPL) in 2026 could generate an extra £15.7 billion in tax revenues over the next decade, according to new analysis from Offshore Energies UK (OEUK).
OEUK says bringing forward changes to the 78% levy would lift total receipts from £32.9 billion to £48.6 billion by sustaining jobs and unlocking investment. The trade body estimates reforms would enable £7.5 billion in payroll taxes, £6.3 billion in additional corporation tax, and £4.6 billion from a new price mechanism, alongside wider supply-chain contributions.
The group argues the plans would 'pay for themselves' within five years and unlock £50 billion of North Sea projects, supporting tens of thousands of jobs and the UK’s net-zero goals. It says 111 viable developments - holding 3.25 billion barrels of reserves - could deliver £75 billion of economic value by 2035.
OEUK warns that delaying reform until 2030 risks a 40% fall in production, 1,000 job losses per month and greater reliance on imports. It also says the OBR has overestimated future tax revenues due to weaker commodity prices.
Chief executive David Whitehouse urged ministers to act now, saying reform would boost investment, protect the workforce and strengthen the UK’s homegrown energy supply.
The Treasury has been approached for comment.
Source: Aberdeen & Grampian Chamber of Commerce
