Labour's UK tax plan risks wiping out North Sea investment

The UK Labour party’s plan to increase the government share of North Sea profits has been greeted with alarm from the industry. Operators have warned investment will be reduced, or cease altogether, decommissioning could be accelerated, and energy transition projects could be put at risk. The UK has a long history of fiscal instability from governments of all political persuasion. However, are these changes proposed by Labour the final nail in the coffin for the UK's upstream industry? Labour hopes the proposed tax regime will generate an increase in reveue to support its green spending plans. But, if the industry responds as it suggests it will, there may be no revenue left to tax.