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Energy Insight: UK Budget 2016
The Chancellor of the Exchequer delivered his Budget to Parliament on 16 March 2016. Full details of all announcements, supporting documents and information are available from Budget 2016:-
https://www.gov.uk/government/publications/budget-2016-documents/budget-2016
The following paragraphs are of particular interest
4.14 Energy taxes
4.15 Motoring taxes
4.16 Support for oil and gas
Budget 2016: tax related documents.
https://www.gov.uk/government/collections/budget-2016-tax-related-documents
Consultation: reforming the business energy efficiency tax landscape
https://www.gov.uk/government/consultations/consultation-reforming-the-business-energy-efficiency-tax-landscape
Fuel duty frozen
Fuel duty will be frozen.
Automotive fuel duty will thus remain as at present:-
|
| LRP | ULSP |
| LPG | ULSD |
| |
|
| Lead replacement petrol | Ultra low sulphur petrol | Super unleaded |
| Ultra low sulphur diesel | Bio-diesel for use as a road fuel | |
| Pence per litre | 67.67 | 57.95 | 57.95 | 37.34 | 57.95 | 57.95 | |
| VAT | 20% | 20% | 20% | 20% | 20% | 20% |
Fuel tax has now remained unchanged since the budget on 1st October 2010.
A comment from the PRA can be found here:-
Fuel duty frozen by chancellor George Osborne for the sixth year in a row to save the average driver £75 per year. Billy Bamborough
http://www.cityam.com/236909/budget-2016-fuel-duty-frozen-by-chancellor-george-osborne-for-the-sixth-year-in-a-row-to-save-the-average-driver-75-per-year
Fuel duty: aqua-methanol. This measure provides a reduced rate of excise duty for aqua methanol (a new fuel
that is 95% methanol, 5% water) that is set aside for use, or used, as fuel in any engine motor or other machinery.
https://www.gov.uk/government/publications/fuel-duty-aqua-methanol/fuel-duty-aqua-methanol
Energy and environment pledges
A big boost for Scotland's struggling oil industry amid a string of energy and environmental pledges:
- Climate change levy will rise from 2019
- £730m in auctions to back renewable technologies
- Petroleum Revenue tax scrapped completely
- Supplementary charge on oil and gas will be cut in half to 10% to help struggling industry
Chancellor George Osborne delivers tax relief to the UK North Sea oil and gas industry. Jessica Morris. 16 March 2016
http://www.cityam.com/236900/budget-2016-chancellor-george-osborne-delivers-tax-breaks-to-the-uk-north-sea-oil-and-gas-industry
Business tax – policy paper:- Climate Change Levy: main and reduced rates.
https://www.gov.uk/government/publications/climate-change-levy-main-and-reduced-rates
Oil and gas – policy paper:- Oil and gas taxation: reduction in Petroleum Revenue Tax and supplementary charge
https://www.gov.uk/government/publications/oil-and-gas-taxation-reduction-in-petroleum-revenue-tax-and-supplementary-charge
Oil and gas – policy paper:- Oil and Gas companies: tax relief for decommissioning expenditure.
https://www.gov.uk/government/publications/oil-and-gas-companies-tax-relief-for-decommissioning-expenditure
Oil and gas – policy paper:- Oil and gas taxation: minor amendments to onshore, cluster area and investment allowances.
https://www.gov.uk/government/publications/oil-and-gas-taxation-minor-amendments-to-onshore-cluster-area-and-investment-allowances
And a response from the Renewable Energy Association (REA):-
Tax cut for oil and gas, tax rises for renewable generators revealed in Budget
http://www.r-e-a.net/news/tax-cut-for-oil-and-gas-tax-rises-for-renewable-generators-revealed-in-budget
Other Media comments
CityAM. Everything you need to know about the budget– 16/3/2016
http://www.cityam.com/236924/budget-2016-from-savers-to-landlords-and-commuters-here-are-the-winners-and-losers-from-george-osbornes-sugar-tax-budget-and-how-it-will-affect-you?utm_medium=Email&utm_source=Email&utm_campaign=160316_CMU
The Guardian. A 'budget for the next generation' can't ignore climate change.
http://www.theguardian.com/environment/damian-carrington-blog/2016/mar/16/a-budget-for-the-next-generation-cant-ignore-climate-change
