Reeves pledges to increase tax on oil and gas companies

LABOUR would raise £50billion from oil and gas firms by raising the windfall tax and keeping it for over two years.

Rachel Reeves, the shadow chancellor, pledged to raise the rate charged on profits to 78 per cent. She pledged to backdate the start of the levy by five months to the beginning of this year and keep it in place until spring 2028.

Labour said it would use the profits to fund the energy relief package for people and businesses. Ms Reeves would put that up to 38 per cent and close a “loophole” which allows firms to avoid the tax by investing in new projects.

She would then extend it by an extra two years and four months beyond the planned December 2025 end date.