Future Of British Business
UK Oil Lobby Warns Financing May Dry Up After Windfall Tax
- Group says banks are set to cut reserves-based lending
- Industry wants 35% levy on profits linked to market prices
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Banks are set to trim billions of pounds in financing for oil and gas producers in the UK’s North Sea after a windfall tax was imposed on the industry to help pay for the country’s energy crisis, a trade group says.
The government introduced the measure earlier this year and then expanded it in November as it sought to fill a hole in the budget caused by subsidizing natural gas bills that have soared since Russia cut supplies to Europe.