Oil giant BP is reportedly considering quitting the North Sea, dealing a fresh blow to Britain's energy security under Ed Miliband. The firm's new boss, Meg O'Neill, who took over a month ago, is weighing up a £2 billion sale of the assets.
Miliband's Attack on BP Profits
This comes just days after Mr Miliband attacked the company over its soaring profits, describing them as 'morally and economically wrong'. He accused BP of 'profiting from a crisis' and defended the Government's high taxes on oil and gas firms. Ms O'Neill countered that any fresh tax raid on the sector would be 'a highly flawed response to the situation'.
Net Zero Drive Blamed for Crushing Investment
Mr Miliband is already widely blamed for crushing North Sea investment with his Net Zero drive. Labour has stopped new drilling and extended a windfall levy, meaning oil and gas operators must pay 78 per cent taxes on their North Sea profits. Critics argue that boosting domestic oil and gas production is increasingly vital as energy supplies from the Middle East are choked off due to the Iran war.
Reeves Humiliated by Competition Watchdog
Meanwhile, Rachel Reeves was slapped down by the competition watchdog over her claims that petrol forecourts are 'profiteering' amid the Iran conflict. The Chancellor was humiliated by the Competition and Markets Authority (CMA), which found that margins at the pumps were 'broadly unchanged' since the conflict started. Ms Reeves sparked a furious row with industry leaders by claiming they were using soaring oil prices as a cover to fleece drivers.
VAT Windfall Surges Past £350m
The Chancellor faced fresh accusations that she was the 'real profiteer' after the VAT windfall from higher pump prices over the past two months surged past £350 million. Ms Reeves is refusing to use this windfall to ditch her planned fuel duty hike, which kicks in from September.
