NORTH SEA WINDFALL FEAR

NORTH Sea projects worth more than £15bn are at risk after Jeremy Hunt hiked a windfall tax, the industry has warned.

The Chancellor has raised the Energy Profits Levy on North Sea profits to 35pc – taking total taxes to 75pc.

But industry sources are also concerned that the levy’s end date has been pushed back to 2028.

The industry is frustrated by the Government’s refusal to lower the tax or confirm it would end early if wholesale prices fall. Investments could now ‘dry up’ and investors may shift focus overseas, according to Offshore Energies UK.

There are more than £15bn of North Sea developments not officially signed off, including Cambo oilfield.

Deirdre Michie, chief executive of OEUK, said: ‘These taxes will reduce profits not just now but far into the future when we know prices are likely to fall.’

A Treasury spokesman said: ‘The Energy Profits Levy strikes a balance between funding cost of living support while encouraging investment.’