Labour should replace levy in 2027 rather than 2030 as energy bills are poised to surge over the winter, says lobby group

The North Sea oil and gas industry has called on Labour to scrap the windfall tax on fossil fuel firms three years early, as Britain heads into a winter with energy bills expected to reach their highest level since Russia’s invasion of Ukraine.

Offshore Energies UK (OEUK), the industry’s trade body, wants the tax replaced in 2027, rather than in 2030, with a narrower levy that only applies during price spikes.

National Audit Office says failure to implement £70bn modernisation would also hold back economic growth

• The ‘great grid upgrade’ is off track – ministers should spell out the risks for bills

Consumers will pay higher energy bills unless the UK government speeds up work on a vast programme of upgrades to the electricity grid to enable the switch to renewables, the public spending watchdog has warned.

The National Audit Office (NAO) said that without faster action the extra costs associated with managing the ageing power network, which are ultimately passed on to the public, could reach £7.8bn a year by 2030.