Business Outlook 2023

crisis, our industry has contributed almost £11bn in production tax to support the country. However the Energy Profits levy, introduced last year, is driving investment out of the sector. The total tax rate for offshore oil and gas operators is now 75%: three times that of conventional UK business. This report sets out the massive scale of the task of reaching net zero, while maintaining energy security and growing the economy – and finds the UK is behind schedule. The UK is in a global race for energy and investment in net zero. The Office for Budget Responsibility has estimated that reaching net zero will cost the UK £1.4 trillion – but over 70% will have to come from the private sector. We have all the ingredients to win this race and

achieve the economic and environmental benefits of net zero, stimulating economic growth and job opportunities in communities across the UK. But our governments need to work with us to carefully rebuild the confidence of the investors that are so crucial to this transformational endeavour. Our industry has the skills to create a future built on cleaner energy, and the resources to get us there. The prize for the UK is too big to miss.

David Whitehouse

BUSINESS OUTLOOK 2023

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