Sunak’s UK oil subsidy could have insulated 2m homes, says thinktank
Billions of pounds given away in a tax break for UK oil and gas exploitation could have permanently cut the energy bills of 2m homes by £342 a year if invested in insulation measures, according to a green thinktank.
Rishi Sunak announced the 91% tax break alongside a windfall tax on the huge profits of oil and gas companies last week. The E3Gthinktank calculated that the tax break would hand between £2.5bn and £5.7bn back to the oil companies over three years, while an energy efficiency programme of £3bn over the same period would upgrade 2.1m homes making them less reliant on gas.
Soaring international gas prices are expected to more than double energy bills in a year by October, pushing a third of households into fuel poverty. Proponents of energy efficiency, including loft and wall insulation, say it is a no-regrets investment that cuts bills for good, slashes the carbon emissions driving the climate crisis and boosts jobs. Green groups said the chancellor’s grants to households partly funded by the windfall tax were only a “sticking plaster”.
Another report published on Tuesday by the Tony Blair Institute for Global Change (TBI) found that a £4bn annual investment in energy efficiency could permanently halve heating bills for households by 2035. Its author said Sunak was handing out “raincoats” but “failing to fix the roof”.
The tax reduction meets official definitions of a fossil fuel subsidy, which the UK and other countries had pledged to phase out. It incentivises new oil and gas production, despite a recent Guardian investigation finding that the fossil fuel industry is already planning projects that would blow the world’s chances of maintaining a liveable climate.
Euan Graham, at E3G, who conducted the tax break
Read more on theguardian.com
