The sun rising behind a redundant oil platform moored in the Firth of Forth near Kirkcaldy, Fife, April 27, 2020
THE Treasury is considering changes to the windfall tax which could hand billions to oil and gas corporations, campaigners warned today.
Proposals drafted by oil and gas lobby group Offshore Energies UK suggest removing the Energy Profits Levy at the end of this year, which would save the industry a mammoth £5.8bn in tax over the next decade.
Politico, which first reported the story, said that the Treasury was weighing up energy bosses’ proposals to scrap the tax as soon as next year.
At the same time, promised investment in energy efficiency to cut household bills could also potentially be slashed.
Sources told the Guardian that the government is looking at reducing obligations under which energy firms help pay for measures such as insulation and new heating schemes.
Campaigners have suggested that the giveaway could effectively cut Britain’s energy efficiency budget by £6.4bn.
Uplift deputy director Robert Palmer said with firms already making billions while Britons struggle with unaffordable energy bills, considering scrapping measures to cut household bills while cutting taxes for profiteering oil companies would be deeply unfair.
Donald Trump urges you to be a Climate Science denier like him. He says that he makes millions and millions for destroying the planet, Burn, Baby, Burn and Flood, Baby, Flood.Keir Starmer commits to play the caretaker role for Capitalism through the “hard times”.UK Prime Minister Rishi Sunak describes his benefit to already filthy rich fossil fuel investors and how he hates poor people.
Protests against the Rosebank oilfield in Edinburgh in 2024. Labour pledged in its manifesto to halt new North Sea licensing, but Rosebank was awaiting final approval when the party won the general election. Photograph: Murdo MacLeod/The Guardian
Lobbyists argued it was unfair for their industry to be treated the same as others as end product – oil and gas – inevitably produced emissions
Experts have accused the fossil fuel industry of seeking special treatment after lobbyists argued greenhouse gas emissions from oilfields should be treated differently to those from other industries.
The government is embroiled in a row over whether to allow a massive new oilfield, Rosebank, to go ahead, with some cabinet members arguing it could boost growth and others concerned it could make the goal of reaching net zero emissions by 2050 impossible to reach. Labour made a manifesto commitment to halt new North Sea licensing, but Rosebank and some other projects had already been licensed and were awaiting final approval when the party won the general election.
Documents seen by the Guardian show the industry group Offshore Energies UK (OEUK) asking for Rosebank and other oilfields’ “scope three emissions” – those caused by the burning of extracted oil and gas – to be treated differently because that was the point of their business.
A court case recently found the licence granted to Rosebank by the previous government was unlawful as it failed to take these emissions into account.
Boeing, Palantir and Babcock listed as sponsors for fringe events run by New Statesman Media Group
Boeing FA-18F Super Hornet Fighter Aircraft | Getty Images / Boeing.
Weapons manufacturers, fossil fuel companies and a spy-tech firm are among those sponsoring events at this year’s Labour Party conference.
Boeing and Babcock, manufacturers of missiles or missile compartments, and Palantir, a controversial spy-tech firm funded by the CIA, will sponsor fringe events hosted by centre-left media company the New Statesman Media Group.
Fossil fuel companies, private health firms, major banks and the International Airlines Group, which owns British Airways, are also among those paying to have a presence at the party’s annual conference in Liverpool, which will host politicians and policy makers – and is Labour’s third in person since Keir Starmer took over as leader.
The party has been slammed for playing host to these industries by environmental groups and anti-weapon groups, who call the sponsorships “disgusting and disappointing.” Its own MP Clive Lewis has also questioned why Labour is “cosying up” to some of the organisations involved.
The events, announced today, boast “Labour Party’s biggest names and most exciting talents,” and cover subjects such as the move to net zero, the housing crisis and healthcare. Speakers include shadow health secretary Wes Streeting, as well as Labour’s chair of the levelling up committee Clive Betts and deputy London mayor Tom Copley.
UK-based Babcock, which has arms deals with the government and has recently signed a deal with Israel Aerospace Industries (IAI), will sponsor a talk entitled “Sovereign capability: How can we make, buy and sell British?”. Speaking on the panel will be Babcock’s chief corporate affairs officer, John Howie, alongside Labour’s shadow minister for defence procurement Chris Evans and the party’s shadow international trade minister Nia Griffith.
Spy-tech firm Palantir, whose owner has donated to Donald Trump’s political campaign, will sponsor a talk on Ukraine called “How can we hold aggressors accountable for war crimes and deter future conflict?” Its executive vice president for the UK and Europe will appear on the panel.
Palantir, which has built software to support drone strikes and immigration raids, is tipped to win a £480m deal this year to build a single database that will eventually hold all the data in the NHS.
Energy company SSE, which has been accused of misleading the public over “green investments,” is sponsoring a “Delivering net zero” talk. Its own managing director of corporate affairs, regulation and strategy, will speak on the panel.
Cadent Gas will sponsor an event entitled “How can the energy sector support customers on the journey to net zero?”. Its chief strategy and regulation officer will speak on the panel.
Other events at next month’s conference will be sponsored by companies such as Offshore Energies UK (formerly known as Oil and Gas UK), National Gas, Ovo Energy and housing developer Taylor Wimpey.
Clive Lewis MP told openDemocracy that “people want change under a Labour government” and hosting some of these firms signals that “the same palms are going to be greased”.
“I do not think that organisations like Palantir and others are necessarily the kind of organisations that Labour in the year before a general election should be cosying up to,” said Lewis. “I think they should be saying: ‘Look, we’ll deal with you but frankly, some of you are part of the problem’.
“I think it’s entirely possible to be on the side of entrepreneurs…without necessarily having to get into bed with big oil companies, big corporations or the likes of Palantir – and the Labour Party should be really clear about that.”
He added: “I think there are questions there for the New Statesman and why they’re accepting sponsorship and funding from some of these ethically and morally questionable corporations.”
Campaigners against the arms industry have condemned the decision to allow weapons manufacturers to have a presence at the conference.
“It is disgusting and disappointing to hear that arms companies will be sponsoring talks at the Labour Party conference,” Emily Apple, media coordinator at Campaign Against Arms Trade (CAAT), told openDemocracy. “These companies should not be given this legitimacy or the opportunity to lobby policy makers in order to continue making profits for their shareholders from a deadly trade that causes destruction and misery around the world.”
She added: “Accepting sponsorship from these companies sends a bleak message to anyone thinking a future Labour government will adopt any kind of ethical stance towards the arms trade.”
Environmental groups have also spoken out, warning Labour against forming relationships with oil and gas companies.
“The fossil fuel lobby is no stranger to cosying up with policymakers – they’ve had a lot of success and made a lot of cash from doing so in the past,” Greenpeace UK’s policy director, Doug Parr, told openDemocracy. “But Labour must not make the same costly mistakes as the Conservatives by giving these self-serving climate-wreckers the opportunity to launder their political reputation.
“The next government must have bold policies and a strong commitment to tackling the climate crisis, not another one that ends up in the back pocket of polluters and dodgy operators.”
The New Statesman’s events arm advertises a partnership with the media company as an opportunity to “showcase your brand, generate leads, nurture relationships,” with “policy makers and politicians.”
It also hosts private round table events that are not publicly advertised, which openDemocracy understands can cost a sponsor over £15,000.
openDemocracy has approached the Labour Party and New Statesman Media Group for comment.
Update, 24 August 2023:This article has been amended to reflect that Babcock does not make missiles but missile components and launch systems.
The sun rising behind a redundant oil platform moored in the Firth of Forth near Kirkcaldy, Fife, April 27, 2020
