Labour must close tax loopholes

July 30, 2024
climate
Climate action

BP is making a profit while the world is on fire.

The new Labour government must close all loopholes in tax breaks and end corporate handouts to fossil fuel giants, the Scottish Greens have said. They have called for the funds to be invested in a green transition for workers and communities.

The call from party leader Patrick Harvie comes as BP reports a staggering profit for the second quarter of 2024.

The current windfall tax, introduced by the Conservatives, involves a perverse mechanism that allows oil and gas producers to receive 91p in tax relief for every £1 they invest in new UK operations.

Mr Harvie said: “These results may be good news for BP, but they are disastrous for our planet.

“The climate crisis is happening all around us, but fossil fuel giants like BP are making a killing, making profits while the world burns around them.

“The loopholes in the supertanker-sized windfall tax are no accident. The Tories put them there on purpose to encourage more drilling that has already done so much to destroy our climate.

“With a new Labour government in Downing Street, these handouts to businesses must stop. Billions of pounds must be raised to tackle the cost of living crisis and fund a green transition for our communities.

“The Tories have shown contempt for our environment for 14 years. The new government cannot continue to repeat the same failed policies. It is time for a whole new approach that focuses on our huge renewable potential rather than encouraging more drilling.

“If we want a safe and sustainable future for generations to come, we urgently need climate action on a scale we have never seen before. The first steps must be to stop all new oil and gas licensing and properly tax the obscene profits of companies like BP to fund our transition.”

The Scottish Greens have called for an end to new fossil fuel exploration licences in the North Sea and for the UK government to revoke the Rosebank field licence and other major projects approved by the Conservatives.