Rachel Reeves' 78% North Sea tax faces fresh scrutiny as BP explores £2bn asset sale

Rachel Reeves' 78% North Sea tax faces fresh scrutiny as BP explores £2bn asset saleThe reported talks have reignited debate over the future of Britain's offshore energy industry. Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Bookmark Add us as preferred source Comments By Ciaran McGrath, Senior News Reporter 09:53, Thu, Jun 4, 2026 Updated: 09:58, Thu, Jun 4, 2026 Chancellor Rachel Reeves (Image: Getty)Rachel Reeves' 78% tax regime for North Sea oil and gas producers is facing fresh scrutiny after BP reportedly explored a near-£2 billion sale of its UK offshore assets. The energy giant held advanced talks with Ithaca Energy over the disposal of its North Sea business in recent weeks, according to the Financial Times.While negotiations ultimately collapsed, the newspaper reported that BP remains interested in divesting the assets and could pursue discussions with other buyers as it seeks to raise $20 billion through asset sales by 2027. The reported talks have reignited debate over the future of Britain's offshore energy industry, where operators have repeatedly warned that high taxes and policy uncertainty are undermining investment. Article continues below ADVERTISEMENT Rachel Reeves blows £60bn hole in UK's finances with out-of-control borrowing Labour promises bigger pension - but experts find 1 major flaw in plan Get the latest politics news - straight from our team in Westminster and more Subscribe Invalid emailWe use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy PolicyPMQs: Kemi Badenoch grills Starmer on North Sea oil and gas window.scriptsToLoad.push({url:'https://live.primis.tech/live/liveView.php?s=121567&vp_content=embed8eabadigwnlm&playerApiId=v1121567',triggeredBy:'tcfLoaded',containerId:'ovp-primis1',title:'Primis player 1'...