06 March 2024 , 15:43
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A Tory Minister has hit out at his own Government's Budget just 30 minutes after it was unveiled by Chancellor Jeremy Hunt.
Energy and Net Zero Minister Andrew Bowie said it was "deeply disappointing" that an extension of the windfall tax on oil and gas had been included in the Spring Budget. Mr Bowie, who is MP for West Aberdeenshire and Kincardine, said he was working with Scottish Tory leader Douglas Ross to resolve the extension of the Energy Profits Levy (EPL), which charges oil and gas companies an extra 35% tax on the money they make in the UK.
In a statement on X/Twitter, Mr Bowie said: "I agree with Douglas. There is much in this budget to welcome. Much that is good for Scotland and our United Kingdom. And only the Conservatives have a plan. However, the extension of the EPL is deeply disappointing. I will be working with him to resolve this."
Shadow Scotland Secretary Ian Murray hit out at Mr Bowie's response: "A Government minister railing against his governments budget. The ink isn’t even dry and it’s falling apart."
Mr Ross, who also said he was said he is "deeply disappointed" at the extension of the windfall tax, was reportedly "talked down" from quitting over the decision to include it in the Budget. In a "heated" discussion on Monday evening, he warned Mr Sunak the move would lose them votes in Scotland. Mr Ross was persuaded not to quit by Scottish Secretary Alister Jack but said he would publicly criticise the move after the Budget was announced, according to the Telegraph.
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Mr Ross, who also serves as an MP for Moray, had also urged the Chancellor not to extend the levy. Despite opposition from the Scottish Conservatives, Mr Hunt announced windfall tax on oil and gas firms has been extended by 12 months in his Budget. The 35% surcharge on profits due to high energy prices had been scheduled to end in March 2028.
In a statement after the Budget was laid out in the Commons, Mr Ross said: "While I accept the Chancellor had some tough decisions to make, I'm deeply disappointed by his decision to extend the windfall tax for a further year. The SNP and Labour have abandoned 100,000 Scottish workers by calling for the taps in the North Sea to be turned off now.
"Although the UK Government rightly oppose this reckless policy - and have granted new licences for continued production in the North Sea - the budget announcement is a step in the wrong direction. As such, I will not vote for the separate legislation needed to pass the windfall tax extension and will continue to urge the Chancellor to reconsider."
The Energy Profits Levy (EPL) was introduced by Rishi Sunak when he was Chancellor in May 2022.