Research on the increasing cost of living and inflation
House of Commons Library publications on the rising cost of living in the UK, including causes of inflation, the effect on households, and Government support.

This Library briefing gives an overview of the way that the profits from North Sea oil and gas production are taxed, and how the fiscal regime that applies to North Sea oil and gas production has been reformed in recent years
Taxation of North Sea oil and gas (1 MB , PDF)
Companies operating in the North Sea pay three separate profit-related taxes on oil and gas production: ring fence corporation tax, supplementary charge, and petroleum revenue tax (PRT). Total receipts from these taxes were £3.1 billion in 2021/22.
Receipts from taxes on the profits from North Sea oil and gas production have fluctuated dramatically over the last thirty years, following peaks and troughs in world oil prices. In the last decade receipts have fallen substantially from £10.6 billion in 2008/08 to £0.6 billion in 2019/20. As a percentage of national income (GDP), receipts have fallen from 0.7% of GDP in 2008/09 to 0.03% of GDP in 2019/20. The Office of Budget Responsibility note that this fall in receipts has largely been driven by falling production and higher tax-deductible expenditure.
Petrol and diesel prices have been rising strongly recently. UK oil and gas revenues rose from £400m in 2020/21 to £3.1 billion in 2021/22. The OBR have forecast that they will rise to £7.8 billion in 2022/23. The OBR’s most recent forecasts for all national tax receipts were published in March 2022 as part of their Economic and Fiscal Outlook (see Table 3.4).
Over the last twenty years there have been three major reforms to the fiscal regime.
Following speculation that the Government would introduce a one-off ‘windfall tax’, in response to the rise in world oil and gas prices and the consequential boost in profits from North Sea oil and gas production the then Chancellor Rishi Sunak gave a statement on 26 May 2022.
Mr Sunak announced a new Energy Profits Levy, charged on oil and gas profits at a rate of 25%. The Levy has effect for profits arising on or after 26 May 2022. The Treasury estimate the Levy will raise around £5 billion in its first 12 months. Details of how the new tax works in practice are given in a technical note published by HM Treasury.
In his statement the Chancellor announced a number of measures to support households with the cost of living, funded, in part, by the Energy Profits Levy. Although not directly related to the Levy, the Department for Work and Pensions has also published guidance on how households can get extra financial support if they are getting certain benefits or tax credits.
The Levy was legislated for via a standalone Bill. The Energy (Oil and Gas) Profits Levy Bill [Bill 135 of 2022-23] was introduced on 5 July 2022, and the Energy (Oil and Gas) Profits Levy Act 2022 received Royal Assent on 14 July 2022. The Bill, with its explanatory notes, is published on the Bill’s page on Parliament.uk. Commons Library briefing Energy (Oil and Gas) Profits Levy Bill 2022-23 discusses the Bill in more detail.
HM Revenue & Customs publish detailed statistics on government revenues from UK oil and gas production.
The approach of Labour, Coalition and Conservative Governments since 2010 to taxing road fuels is discussed in a Library briefing: Taxation of road fuels.
The Library briefing Petrol and diesel prices looks at trends in the price of petrol and diesel at the pump and before tax, possible reasons for the gap in prices between the two fuels and compares prices and taxes in different countries.
There have been two occasions in recent times where a windfall tax has been introduced in the UK: first, a levy introduced by the Conservative Government in 1981 on bank deposits, in the context of the sector’s record profits from high interest rates; and second, a tax introduced by the Labour Government on utility companies that had been privatised by its Conservative predecessor. A 2004 Library briefing discusses both taxes in more detail: The Windfall Tax.
Taxation of North Sea oil and gas (1 MB , PDF)
House of Commons Library publications on the rising cost of living in the UK, including causes of inflation, the effect on households, and Government support.
This briefing gives an overview of rising prices, particularly food, energy and fuel prices, including the effect of the conflict in Ukraine. It outlines Government support as well as how inflation, interest rates and other policies which will affect household budgets.
This page features Commons Library publications relevant to the current crisis in Ukraine.