Labour warned plans to increase the windfall tax could see 42,000 jobs cut [Video]

Labour plans to extend the windfall tax on UK oil and gas producers could lead to 42,000 jobs and £26bn of economic value being wiped out, the offshore energy industry has warned.

The party published plans for a “proper” windfall tax earlier in the week which would see the energy profits levy for North Sea companies rising to 78%.

Labour said the move, which would bring the country in line with Norway, would “end the loopholes in the levy that funnel billions back to the oil and gas giants”.

Offshore Energies UK, the trade body for the sector, has asked for an urgent meeting with the Labour leadership following the plans being announced.