Labour faces criticism for its planned increase in the windfall tax on North Sea oil and gas, which Offshore Energies UK (OEUK) warns could lead to a £13 billion loss for the UK economy over the next five years. The proposed rise in the Energy Profits Levy (EPL) to 38% is expected to reduce investments from £14.1 billion to just £2.3 billion between 2025 and 2029. While Labour argues that the tax is necessary due to substantial profits made by energy companies during the cost-of-living crisis, critics fear it will jeopardize thousands of jobs and reduce domestic production. OEUK's chief executive, David Whitehouse, stated that the policy could trigger an accelerated decline in the sector's contributions, impacting jobs and tax receipts. Additionally, the government’s removal of the investment allowance further complicates the industry's financial landscape. As the Labour government moves forward with these changes, the potential for significant economic repercussions looms large.