On Wednesday, the British government approved Jackdaw, a natural gas production project in the North Sea. Kemi Badenoch, leader of the notionally center-right Conservatives (Tories), said it was the right move, contradicting 14 years of Tory government.
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Badenoch vs Farage.
The Jackdaw gas project is a natural gas development in the central North Sea, approximately 150 miles off the coast of Aberdeen, a city in north-east Scotland. The project was originally approved under the Conservatives in 2022, but they allowed it to be delayed by lawfare over whether its environmental assessment properly accounted for carbon emissions from burning the gas. According to government projections, the project could generate £2.9 billion for the country’s economy, create jobs, and lower energy costs.
Following the Labour government’s decision to finally approve Jackdaw, Badenoch posted on X (formerly Twitter): “Finally. Labour spent 2 years faffing about to make a decision which Conservatives had already approved 2 years ago. If they’d done this in the summer we’d have had that gas heating British homes this Christmas. An unnecessary waste of time and money by a party that puts its own interest above the country’s.”
In response, Reform UK party leader Nigel Farage posted: “Kemi Badenoch is arguing for more North Sea oil and gas. Has she forgotten that the Tories taxed the industry to destruction?”
Finally. Labour spent 2 years faffing about to make a decision which Conservatives had already approved 2 years ago.
If they’d done this in the summer we’d have had that gas heating British homes this Christmas.
An unnecessary waste of time and money by a party that puts its… https://t.co/6b5oBE63An
— Kemi Badenoch (@KemiBadenoch) October 21, 2026
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The Tories’ Record on Tax.
Conservative-led governments between 2010 and 2024 made several major decisions that increased the tax burden on North Sea oil and gas.
In 2011, then-Chancellor George Osborne imposed a major tax hike on North Sea oil and gas production in his March budget. Specifically, Osborne increased the North Sea supplementary charge from 20 percent to 32 percent. He also restricted tax relief for decommissioning costs. However, between 2014 and 2016, following the Conservatives’ tax hike, the price of oil collapsed. In response, the Conservative-led government was forced to incrementally reverse the 2011 increase. The charge was cut from 32 percent to 30 percent in 2014. The charge was then cut to 20 percent in 2015 and then to ten percent in 2016. This coincided with a cut to Petroleum Revenue Tax, which decreased from 50 percent to 35 percent in March 2015.
However, in May 2022, then-Prime Minister Rishi Sunak introduced the Energy Profits Levy, a 25 percent tax on profits from North Sea oil and gas production. The levy was imposed on top of an official 40 percent tax rate, taking the combined rate of tax to 65 percent. The levy was subsequently increased to 35 percent in January 2023, raising the official rate to 75 percent. The increase coincided with a cut in investment allowance from 80 percent to 29 percent. In July 2024, the Conservative government announced plans to abolish the investment allowance altogether. This heavily discouraged investment in new projects and production.
At present, North Sea oil and gas producers face a 30 percent ring-fence corporation tax rate, distinct from the standard corporate tax rate. While the ring-fence corporation tax rate was imposed in 2002, during the Labour government of former Prime Minister Tony Blair, the Conservatives’ interventions significantly compounded this tax burden. Altogether, high taxes and burdensome regulations have contributed to closures and significant job losses.
Kemi Badenoch is arguing for more North Sea oil and gas.
Has she forgotten that the Tories taxed the industry to destruction?
— Nigel Farage (@Nigel_Farage) October 21, 2026
The Tories’ Record on Net Zero.
The Conservatives’ record of heavily taxing North Sea oil and gas production is deeply entwined with the party’s advocacy of Net Zero.
In June 2019, then-Prime Minister Theresa May’s government changed the legally binding 2050 emissions target from an 80 percent reduction to net zero emissions, making Net Zero a central long-term framework for policy formulation and placing severe restrictions on oil and gas projects. The initial 80 percent target was introduced by former Labour Prime Minister Gordon Brown in 2008.
In November 2019, then-Prime Minister Boris Johnson announced an immediate moratorium on fracking. The Conservatives’ December 2019 general election manifesto committed to maintaining the moratorium, which was temporarily lifted under then-Prime Minister Liz Truss in September 2022 but reimposed by her successor, Rishi Sunak, the month after.
Roughly a year he announced his fracking moratorium, Johnson’s government announced a ban on the sale of new petrol and diesel cars and vans from 2030. This coincided with plans to increase heat-pump installations to 600,000 a year by 2028 in a push to support low-carbon heating, reflecting the Tories’ push to incrementally eliminate natural gas businesses.
Significantly, successive British governments’ decisions to fund Net Zero through energy bills has made electricity around four times more expensive than natural gas per unit, according to a recent report from Energy UK.
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