An independent research firm has warned of a possible £5billion funding hole in the chancellor’s strategy to finance the green prosperity plan.
The government is plotting strict raids on oil and gas profits to help bankroll the energy transition.
But Dane Inglis, a management consultant at research firm Rystad Energy, cautioned that nearly half of the £10.8billion the government expects to scoop oil and gas profit taxes could be at risk.
Energy Voice reports she said: “At least £4.9 billion, or roughly half of what Labour are looking at targeting, could be considered at risk from lower brownfield activity in the North Sea."
Analysts found that close to 50% of the money the government is expecting to raise through the Energy Profits Levy (EPL) this November could be at risk of falling through if developers stop activity or even pull out of the UK market altogether due to the loss of incentives.