North Sea Tax Hike Could Cripple UK Oil Sector

Energy industry leaders have warned that a new tax on North Sea oil and gas profits could cause lasting damage to Britain's sector. The warning comes as the government considers extending an existing windfall levy, which currently taxes profits at 78%.

The proposed tax raid would target inflated profits generated from the Iran war, which has driven up oil and gas prices and increased borrowing costs. Russell Borthwick, chief executive of the Aberdeen chamber of commerce, warned that another tax on the industry would cripple an sector that Britain cannot afford to lose.

Enrique Cornejo, policy director at Offshore Energies UK, also cautioned against piling more pressure on the industry, saying any further changes to the fiscal regime would severely undermine investor confidence and energy security.