CBI chief urges cut windfall tax, approve North Sea oil
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- Rain Newton Smith said the energy profits levy is reducing investment in the North Sea and urged its reform together with approval of the Rosebank and Jackdaw projects.
- Ed Miliband is being pressed to approve the Rosebank and Jackdaw licences, which were blocked after a High Court judge ruled the original licences were granted unlawfully.
- Rosebank is estimated to hold 300‑500 million barrels of oil, the largest untapped field in British waters, and could start production as early as 2027 if the extraction ban is lifted.
- Jackdaw is believed to contain up to 250 million barrels of oil and could also come online by 2027 under the same conditions.
- James Murray (chief secretary to the Treasury) declined to comment on a decision, stating the matter is for the energy secretary and part of broader policy on continued North Sea oil and gas use.
- Tony Blair’s think‑tank previously urged ministers to accelerate domestic supply to reduce reliance on volatile imports, echoing the CBI’s call.
Why it matters: If the government lifts the windfall tax and approves Rosebank and Jackdaw, oil firms stand to gain investment and revenue, while the UK could preserve jobs and tax income amid the energy crisis; the Treasury’s reluctance signals a policy tug‑of‑war between climate goals and short‑term energy security.
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