THE UK Government will permit further oil and gas drilling in the North Sea – but its controversial windfall tax will remain until 2030.

The news comes after oil and gas firms spent months lobbying the Labour Government to remove the Energy Profits Levy in a bid to protect North Sea drilling activity.

The tax decision has been welcomed by environmental campaigners, who argue that “oil giants should be paying their fair share of taxes – not lobbying for billions in tax cuts”. However, the Scottish Greens condemned Labour’s “utterly reckless backtracking” in deciding to allow further drilling.

The SNP welcomed the drilling decision, but attacked the retention of the tax, saying it would "continue to cost jobs".

Labour’s General Election manifesto ruled out licensing new exploration

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