Refining Sector: Competitiveness
Tuesday, 3 November 2026
Contributions
Henry Tufnell (Mid and South Pembrokeshire) (Lab)Labour
7. What fiscal steps he is taking to increase the competitiveness of the refining sector.
The Exchequer Secretary to the Treasury (Dan Tomlinson)Labour
At the Budget, the Government announced that they intend to expand to refinery products the CBAM—the carbon border adjustment mechanism—subject to the consultation launched on Budget day.
I welcome the Government’s announcement in last week’s Budget of the intention to expand the scope of the CBAM to include refinery products. That is critical to preventing carbon leakage by ensuring that British refineries are on a level playing field when compared with imported refined products. It will protect thousands of jobs in Pembrokeshire and strengthen our energy national security. Will the Minister set out a clear timetable for implementation? What assurances will he provide on protecting the competitiveness of the export sector for refineries in this country?
My hon. Friend has been a strong representative of the workers at the Pembroke refinery. He has been campaigning on this issue for a long time and I thank him for his continued engagement. His constituents should know that he definitely has their back. The Government have launched a consultation and are seeking views from a range of stakeholders on the practical, technical and economic considerations of any potential expansion. This is, as my hon. Friend will know, a complex area and it is important that we take the time to get the detail right.
Mr Gregory Campbell (East Londonderry) (DUP)Democratic Unionist Party
Critical to the competitiveness of the refinery sector is the taxation of the companies. I know we have just had the Budget, but will the Treasury keep in mind for forthcoming fiscal events that essential element to competitiveness in the sector?
I thank the hon. Member for his question. The Government have been considering a replacement for the energy profits levy. From 2030, or sooner if prices fall below the relevant thresholds, the new and improved design of the tax for the long term, the oil and gas revenue levy, will be coming into force.
Mr SpeakerSpeaker
I call the shadow Minister.
John Cooper (Dumfries and Galloway) (Con)Conservative
Oil is the lifeblood of the refinery sector, but the Government missed an opportunity to back this foundational industry both upstream and downstream. The Rosebank oilfield is already priced into the OBR’s assumptions. If that does not get the go-ahead, it will be back to the drawing board, Chancellor—won’t it? Is the fiscal headroom not already thin and will it not disappear even more if Rosebank does not get the go-ahead? The reality is that this Budget is built on sand.
It was the Opposition who fluffed it when it came to approving Rosebank and Jackdaw. They could not make sure that they signed the right paperwork at the right time. We had to clean up their mess in that and a whole range of other areas.
Source: UK Parliament Hansard API. Debate ID: 5430954.