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The government will end the windfall tax on bumper oil and gas profits in 2028, if prices drop.

The move is in response to fossil fuel companies warning they are cutting back on investment.

The windfall tax – 75% of North Sea oil and gas production profits – will continue for the next five years but the government has announced that if prices fall to historically normal levels for six months the tax rate for oil and gas companies will return to 40%.

Prices had reached historic highs following the invasion of Ukraine, resulting in record profits for oil and gas producers such as Shell and BP.

Companies do not pay the full 75% or 40% rate as they can offset tax liabilities on investment they make.

Though the windfall tax included an investment allowance the government said if it didn’t end when prices come down the long-term future of the UK’s domestic oil and gas supply is at risk, as the country would import more from abroad.

The windfall tax, known as the energy profits levy, has raised around £2.8bn to date, the government added, and is expected to raise almost £26bn by March 2028.

Funds raised have been used to support household energy schemes such as the energy price guarantee, which limits typical domestic energy bills until the end of June.

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No new oil and gas projects can be developed if the world is to stay within safe levels of climate change, the International Energy Agency said more than two years ago.

But the Treasury said it would be “irresponsible to turn off the North Sea taps overnight”.

“Without oil and gas from British waters, we would be forced to import even more from overseas, putting our security of supply at risk,” Gareth Davies, exchequer secretary to the Treasury, said.

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The tax will end when prices fall to $71.40 per barrel of oil and 54p per therm of gas for six months. At present a barrel of brent crude oil is trading around $75 a therm of gas is roughly 60p.

Supporting new oil and gas projects in the North Sea has been politically contentious in recent weeks. Labour has come under pressure from the GMB union and the prime minister over its policy to ban new fossil fuel projects in the waters off the UK.

Labour leader Keir Starmer said he would work with unions to “seize the opportunities” of green energy to prevent mass job losses and avoid mistakes of the 1980s which decimated coal communities.

Today’s announcement has been welcomed by industry and politicians but not campaigners.

Offshore Energies UK, formerly Oil and Gas UK, but the group said more needed to be done and details of the government plan need to be understood.

“Enabling continued UK energy production now and in future depends on a predictable and fair fiscal environment. The UK must be competitive if we are to be successful in the global race for energy investment,” a spokesperson said.

“We provide over 200,000 good, skilled jobs across the length and breadth of the UK.”

Labour cautiously welcomed the policy end but said there were problems with loopholes in the how the tax currently operates with much of the money not being collected.

It’s “right there is a strategy for bringing those taxes to an end when the time is right, because it should only be on the basis of un-forecast profits”, said Labour’s shadow immigration minister Stephen Kinnock.

NGO Global Witness said the policy announcement was obscene. It show government “has learned nothing from the energy crisis and is intent on returning to business as usual as quickly as possible”.

“That means doing nothing to reduce our dependence on oil and gas, doing nothing to provide price security for consumers, and doing nothing to rein in climate breakdown. The fossil fuel industry has used its enormous influence and power to fight the windfall tax, and it is an affront to humanity that it appears to have won,” a spokesperson said.

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Child sexual exploitation victims ‘not in scope’ of violence against women and girls strategy

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Child sexual exploitation victims 'not in scope' of violence against women and girls strategy

Victims of child sexual exploitation are “not explicitly within the scope” of the Violence Against Women and Girls (VAWG) strategy being drafted by the government, Sky News can reveal.

Child Sexual Abuse and Exploitation (CSEA) is a form of child abuse, described by police as a “critical threat” to women and girls.

It includes crimes such as grooming, and can involve both physical contact, such as rape, or non-physical – like forcing children to look at sexual images.

Sky News has been shown an internal Home Office document presented to various stakeholders in the sector.

Screenshot detailing strategy
Image:
Screenshot detailing strategy

It’s titled “Scope of the Strategy… Our draft definition of VAWG”, and says that while it recognises “links” between VAWG and child sexual exploitation, it is not “explicitly within the scope of the strategy”.

“VAWG is Violence Against Women and Girls. If you take child sexual abuse out of it, where are the girls?” Poppy Eyre told Sky News.

Poppy was sexually abused and raped by her grandfather when she was four.

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It wasn’t until she was 11, after a PHSE lesson on abuse at school, that she understood the enormity of what had happened.

“I remember very vividly when the police came round and told me… this is what we’re charging him with,” said Poppy.

“We’re charging him with sexual abuse and rape. And I remember being like, I had no idea that’s what it was, but I know that’s really bad.”

Poppy Eyre was sexually abused and raped by her grandfather when she was four
Image:
Poppy Eyre was sexually abused and raped by her grandfather when she was four

Poppy’s grandfather was convicted and died in prison.

She questions how authorities would police crime if child sexual abuse is excluded from an umbrella strategy to tackle violence against women and girls.

“Are they holding child sexual abuse at the same level of importance as they are with violence against women? You’d hope so, but potentially not, because it doesn’t need to be in the figures”, she said.

'Are they holding child sexual abuse at the same level of importance?' asks Poppy
Image:
‘Are they holding child sexual abuse at the same level of importance?’ asks Poppy

The government has pledged to halve VAWG within a decade, by 2035.

“If the government are measuring themselves against halving violence against women and girls – if they’re not looking at the scale of child sexual abuse and child sexual exploitation within that – that will mean we are failing many young victims of abuse,” said Andrea Simon, director of campaign group End Violence Against Women.

The Centre of Expertise on Child Sexual Abuse, which is funded by the Home Office, estimates 500,000 children in England and Wales are sexually abused every year.

‘Danger’ of having separate plan

Rape Crisis told Sky News that “for any strategy to be effective” it “must include all forms of gender-based violence against all women and girls”, suggesting there is a “danger” in having a separate plan for child sexual abuse.

Its chief executive, Ciara Bergman, said it could create a “problematic and potentially very unhelpful” distinction between victims of domestic abuse, expected to be covered by the strategy, and child sexual abuse.

“Some perpetrators of domestic abuse also sexually abuse their children,” she told Sky News.

The government insists the strategy will include action to tackle child sexual abuse, but says it also plans to create a distinctive programme to address its specific crimes.

Poppy's mother Miranda Eyre says she's 'speechless' and 'angry' over the government's approach
Image:
Poppy’s mother Miranda Eyre says she’s ‘speechless’ and ‘angry’ over the government’s approach

“Sexual abuse is violence against a child,” said Poppy’s mother, Miranda Eyre, who now works as a counsellor specialising in trauma.

“It is violence against girls… and you can’t separate it out,” she said. “I’m speechless to be honest… it does make me quite angry.”

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A Home Office spokesperson told Sky News it is “working tirelessly to tackle the scourges of violence against women and girls and child sexual abuse”.

“These issues are complex and run deep within the fabric of society,” they added.

“The government wholly recognises that they overlap. But it also recognises that concerted action is needed to tackle child sexual abuse which is why we have set out a range of actions… and why we are launching a national inquiry into grooming gangs.”

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British veteran, 100, recalls witnessing Japan’s Second World War surrender on USS Missouri

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British veteran, 100, recalls witnessing Japan's Second World War surrender on USS Missouri

A British veteran has spoken about how he witnessed Japan’s wartime surrender up close as a 20-year-old sailor.

Reg Draper was off Japan’s coast on the HMS Duke of York when the captain announced the war was ending.

Recalling that moment – 80 years ago today – he said cheers went up from the battleship’s crew.

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Why is it important to mark VJ Day?

Mr Draper saw the Japanese sign the agreement on USS Missouri when he went on board to help his friend, who was the ship’s photographer.

“All the ships mustered in Tokyo Bay with the USS Missouri, which was the American ship, and it was on the Missouri where they signed the peace treaty,” the 100-year-old recalled.

“Then we all came back down to Australia and we went and celebrated – we went down to Tasmania and everybody had four days leave in Hobart.

“Everybody wanted to take us to their home and there were a couple of dances in the dance hall.”

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Mr Draper still has a photo showing the peace deal being signed. Pic: Royal British Legion/PA
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Mr Draper still has a photo showing the peace deal being signed. Pic: Royal British Legion/PA

Mr Draper got a letter recognising his presence at the surrender. Pic: Royal British Legion/PA
Image:
Mr Draper got a letter recognising his presence at the surrender. Pic: Royal British Legion/PA

Mr Draper, who grew up in Leeds, was a stores assistant on the Duke of York after volunteering on his 18th birthday.

His duties included rationing out the rum so all the sailors could get their 11am hit. He said senior crew got theirs neat while everyone else had theirs watered down.

He also recalled being clattered by Prince Philip after the Queen’s future husband, who was on a destroyer escorting his ship, came aboard.

A view looking out over the HMS Duke of York. Pic: AP
Image:
A view looking out over the HMS Duke of York. Pic: AP

Mr Draper met Prince Philip again in the 70s - but the hockey wasn't mentioned. Pic: Royal British Legion/PA
Image:
Mr Draper met Prince Philip again in the 70s – but the hockey wasn’t mentioned. Pic: Royal British Legion/PA

“We used to have deck hockey on the quarter deck and it was murder playing deck hockey,” said Mr Draper.

“He [Philip] knocked me over once and then the next time he came round he hit me, there’s still a mark there, he gave me a clout with his hockey stick.

“He came to see me just to see how I was. They just put a stitch in and it was alright.”

The pair met again in 1972 when Mr Draper was training sea cadets for the Duke of Edinburgh awards.

He said Philip noticed his medals and recalled escorting the ship – but didn’t mention the hockey game.

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Mr Draper’s time on the Duke of York included Arctic convoys to deliver supplies to Russia and sailing to Sydney, Australia, in 1945 before joining the East Indies Fleet.

“We started going up to the islands, kicking the Japanese out of the islands as we went,” he recalled.

Japan surrendered after the US dropped two nuclear bombs on Hiroshima and Nagasaki, on 6 and 9 August.

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Mr Draper now lives in Elton in Cheshire. Pic: PA
Image:
Mr Draper now lives in Elton in Cheshire. Pic: PA

Mr Draper turned 21 on the trip back to Europe and said 2,000 people were on board as they had picked up prisoners of war.

He went on to become an insurance salesman and said he’s planning to watch today’s 80th anniversary commemorations from his home in Elton, Cheshire.

The King released an audio message in which he said the sacrifices of VJ Day veterans should “never be forgotten”.

He described how the heroic actions of those sent to fight in the Far East, as well as the brutal treatment of civilians, “reminds us that war’s true cost extends beyond battlefields, touching every aspect of life”.

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King to warn that sacrifices of VJ Day veterans should ‘never be forgotten’

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King to warn that sacrifices of VJ Day veterans should 'never be forgotten'

The King will issue a warning that the sacrifices of the VJ Day veterans should “never be forgotten” as they “gave us more than freedom; they left us the example of how it can and must be protected”.

In an audio message, due to be released on Friday morning to mark 80 years since the end of the Second World War in the Far East, King Charles will describe how the heroic actions of those sent to fight there and the brutal treatment of civilians “reminds us that war’s true cost extends beyond battlefields, touching every aspect of life”.

In what could be interpreted as him alluding to current world events and conflicts, he will emphasise the importance of international collaboration, saying that victory in 1945 demonstrated that “in times of war and in times of peace, the greatest weapons of all are not the arms you bear but the arms you link”.

Pic: PA
Image:
Pic: PA

The six-minute audio message to the Nation, Realms and Commonwealth to mark VJ Day, echoes the audio broadcast made by his grandfather, King George VI, which the King will reference.

He recorded it in the Morning Room at Clarence House earlier this month.

Victory over Japan (VJ Day) was declared on 15 August 1945, following Imperial Japan’s surrender to Allied Forces.

With Victory in Europe (VE Day) declared in May 1945, some have felt that historically VJ Day has been overlooked, undervaluing the sacrifices of those who continued to fight on for another three months.

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In his message, the King will say that the service and sacrifice of those who fought and died in the Pacific and Far East “shall never be forgotten”.

He will also refer to the experience endured by prisoners of war and to the innocent civilians of occupied lands in the region.

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King Charles and Queen Camilla will also publicly mark the anniversary by attending a national service of remembrance at the National Memorial Arboretum in Staffordshire.

The service, run in partnership with the Royal British Legion, will be attended by Burma Star recipients, a veteran of the British Indian Army and those involved in the Battles of Kohima and Imphal.

Prisoners of war held across the region and veterans stationed in the UK or Commonwealth countries who contributed to the war effort will also attend. A two-minute national silence will be held at midday.

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