Commons Rejects Windfall Tax Rollback, Backs Clean Power

High-Level Summary

Energy policy dominated proceedings. During Energy Security and Net Zero questions, ministers outlined grid upgrades, bill support and measures to reduce exposure to fossil fuel price shocks. The Chancellor then delivered a Middle East economic update, detailing energy‑security steps, consumer protections, and contingency planning. In Opposition Day debates, the House rejected a motion to remove the windfall tax and accelerate new North Sea licences, agreeing a Government amendment prioritising existing fields and clean power, and also defeated a motion criticising delays to the Defence Investment Plan. MPs approved several statutory instruments, heard petitions, and discussed severe coastal erosion in Start Bay in the adjournment.

Detailed Summary

Business before Questions: Committee of Selection

The House ordered a change to the Committee of Selection, discharging Paul Holmes and adding Jerome Mayhew. The motion was moved on behalf of the Whips: “That Paul Holmes be discharged… and Jerome Mayhew be added.”—(Sir Mark Tami.).

Oral Answers: Energy Security and Net Zero

Ministers highlighted grid reinforcement and connections reform, calling it “the biggest upgrade to the grid since the 1960s” in west London and nationally. They noted clearing the connections queue and issuing Gate 2 offers: “the first gate 2 offers are going out now”. On bills, the Secretary of State said the Ofgem cap will fall by £117 from 1 April and Warm Home Discount support has nearly doubled to 6 million, taking “another £150 off people’s bills”. He linked lower prices to renewables auctions, saying “we will power the equivalent of 23 million homes”, and stressed that prices are set on international fossil markets, underscoring the case for clean power. Members pressed on off‑grid heating oil and rural support; ministers cited £53 million through the crisis and resilience fund and active Competition and Markets Authority scrutiny. Other topics included methane from landfill—about 2.5 TWh a year—and transitional arrangements after 2027; nationally significant infrastructure projects for electric lines; and local ownership via the £1 billion local power plan. Ministers defended the windfall tax, saying it has raised “£12 billion”. No formal decisions were taken; ministers reaffirmed grid reform, streamlined planning and support for vulnerable consumers.

Ministerial Statement: Middle East – Economic Update

The Chancellor outlined the economic context and actions responding to the conflict. Internationally, the UK began releasing its share of 13.5 million barrels from reserves: “the UK has now begun the release of our share of 13.5 million barrels of oil”. Domestically, she highlighted steps on renewables, onshore wind, grid connections, nuclear and support for North Sea tiebacks. She will legislate to implement the Fingleton review and is exploring “indemnities” to back critical energy projects if planning consent is challenged. On households and businesses, she listed measures taking effect next week and confirmed price‑cap certainty to July, with further work on an EU SPS agreement to help food prices and possible targeted agrifood tariff cuts. She announced work to expand CMA powers against price‑gouging with “a new anti-profiteering framework”, and emphasised being “responsive” and “responsible”, including extending the 5p fuel‑duty cut and rolling out the cheaper fuel finder. The Chancellor said contingency planning is under way “for every eventuality” within fiscal rules. In exchanges, she said fiscal headroom had “more than doubled” and that revised Jackdaw and Rosebank plans are with regulators. She reported “more than 90% of retailers have signed up” to cheaper fuel finder.

Opposition Day: Oil and Gas (Government amendment agreed)

The motion proposed removing the Energy Profits Levy, ending the ban on new licences and immediately approving Rosebank and Jackdaw. The mover argued domestic production supports security and has lower emissions than LNG: “We use all the gas that we drill in the North sea” and LNG has “four times the emissions”. She claimed Jackdaw and Rosebank “could be up and running by Christmas”. For the Government, the Minister said policy is to maintain existing fields for their lifetime and introduce Transitional Energy Certificates (tiebacks), while accelerating clean power. He argued new exploration licences would make “no difference to people’s energy bills” as prices are set internationally, and that the windfall tax has raised about £12 billion. The Liberal Democrat spokesperson opposed new North Sea licences. Outcome: the House rejected the original motion (Ayes 108, Noes 297) and agreed a Government amendment supporting existing fields, tiebacks and faster clean energy.

Opposition Day: Defence (motion negatived)

The motion criticised delays to the Defence Investment Plan (DIP), alleged a procurement freeze, and called for 3% of GDP on defence, 20,000 more troops, and funding via restoring the two‑child cap and redirecting net‑zero funds. The mover cited capability delays, noting Sea Viper Evolution progress remains “subject to the defence investment plan”. He reported industry uncertainty and strain. The Minister said the DIP would be published “as soon as is feasible”, cautioned against a “shopping list”, and highlighted recruitment improving: “more people are joining the armed forces than leaving” for the first time in over a decade. He pointed to spending plans including a path to 2.5% of GDP by 2027. Outcome: the motion was defeated (Ayes 98, Noes 306).

Delegated Legislation approved

Without division the House approved: the draft Electricity and Gas (Energy Company Obligation) (Amendment) (Specified Period) Order 2026; the draft Sussex and Brighton Combined County Authority Regulations 2026; and authorisation of financial assistance up to a cumulative £570 million for the Life Sciences Large Investment Portfolio.

Public Petitions

Two petitions were presented. First, on the planned closure of Uxbridge High Street Post Office, petitioners asked the House “to put pressure on the Post Office to provide an alternative post office site in Uxbridge before closing its existing branch”. Second, on the National Planning Policy Framework review and Redbourn, petitioners sought a debate and measures to protect villages from over‑development and enhance community power in planning.

Adjournment: Coastal Communities – Start Bay

An adjournment debate highlighted severe erosion impacts at Start Bay, including “the collapse of the A379” and significant damage to homes and businesses. The Member argued the Bellwin scheme is ill‑suited to coastal flooding and urged a national strategy for households displaced by erosion: “This is not just an infrastructure problem; it is a human one”. The Minister expressed sympathy and outlined support: about “£609 million” for protection from sea and tidal flooding and coastal erosion in 2024‑26, a £30 million coastal adaptation pilots programme (with £12 million for local actions), and continuing Environment Agency assessment of further defence works at Torcross, with initial findings due shortly. She undertook to relay specific asks to relevant Departments; no immediate decisions were announced.