Businesses say: Wind tax ‘damages’ net zero plans and energy security | Business Newsletter

The Confederation of British Industry said the levy would do “damage” to the UK’s net zero plans and energy security.

Rain Newton-Smith, chief economist at the CBI, said the tax “sends the wrong signal to the entire sector at the wrong time”, pointing to a “business tax backdrop”.

Prime Minister Rishi Sunak said oil and gas companies will pay a 25% tax on profits that will be eliminated when prices return to normal – but he said companies will get a 90% tax exemption on any profits they make. investment.

Mr Newton-Smith said the government needed to work with businesses on a “real” plan to boost investment and “get growth back, especially in areas like energy efficiency”. .

“While investment is encouraged, the non-open nature of energy monetization – and the potential to bring electricity generation to life – will compromise the investment needed for security,” he said. zero energy and ambition,” he said.