To ask the Chancellor of the Exchequer, what modelling his Department has undertaken on the extra investment that will be brought forward as a result of the introduction of the investment allowance announced in his Economy Update on 26 May 2022.
Answered on
13 June 2022
The new Energy Profits Levy will raise around £5 billion over the next year. This figure factors in the investment allowance.
The Government expects the combination of the Levy and the investment allowance to lead to an overall increase in investment.
The Levy will be legislated for shortly, and a Tax Information and Impact Note will be published as standard. A full costing of the policy will be certified by the independent Office for Budget Responsibility at Autumn Budget 2022.