Here’s what the UK energy sector wants from the spending review...

Here’s what the UK energy sector wants from the spending review
GB Energy, oil and gas, carbon capture and storage, offshore wind and nuclear energy are high on the agenda.
June 9th 2025, 7:00 am

The UK energy sector has outlined its list of priorities ahead of the UK government’s comprehensive spending review on 11 June.
Chancellor Rachel Reeves will hand down her second major fiscal statement following the delivery of her first budget in October last year.
In Labour’s first budget in 14 years, Reeves outlined major policy shifts including an increase to the windfall tax on oil and gas firms and funding for green hydrogen projects.
Now, the Chancellor will hand down a Spring review which will reveal the Labour government’s priorities for spending ranging from healthcare to defence.
As for the energy sector, UK firms will be looking for answers to key funding questions.
Areas of particular interest include carbon capture and storage (CCS), offshore wind, nuclear energy, and the future of oil and gas licensing.
There are also reports that Labour’s flagship publicly-owned GB Energy could be in line for cuts to its £8.3 billion budget.
With public finances stretched, the Institute for Fiscal Studies (IFS) has highlighted that a big increase to defence spending leaves little room for other priorities.
“Given that, it will not be possible to also prioritise investments in public services, net zero and growth-friendly areas while staying within the envelope,” the IFS said.
“It is perhaps the decision the government makes here that will give us the clearest sense of its true priorities.”
North Sea oil and gas
The OEUK is also continuing to urge the Labour government to reverse its decision to raise and extend the Energy Profits Levy (EPL) windfall tax.
OEUK said the spending review should “help the UK’s offshore energy and other industrial sectors unlock economic growth and strengthen supply chains”.
Whitehouse said with the UK importing over 40% of its energy supplies, the country needs “more wind, hydrogen, oil and gas, and CCUS”, all sectors where offshore operators are investing.
“These are critical times and our sector can help government lay a credible path to economic growth. This starts with support for homegrown energy,” he said.
“We must work together to unlock business investment across UK energy opportunities. This includes the build out of renewables alongside the responsible production of oil and gas.”
Alongside the windfall tax, Labour is also undertaking consultations on the future of the North Sea focused on oil and gas licensing and the sector’s climate compatibility.

https://www.energyvoice.com/renewab...energy-sector-wants-from-the-spending-review/