Britain's Chancellor Rachel Reeves unveiled the UK budget, which includes a significant increase in the Energy Profits Levy on North Sea oil and gas producers to 38%, aiming to transition towards supporting green energy initiatives. This move, marking a 3% rise from the previous Conservative administration's levy, sets the headline tax rate for the industry at 78%. Reeves also eliminated the 29% investment allowance while maintaining the 100% first-year capital allowance and decarbonization allowance. The Energy Profits Levy is expected to phase out by March 2030. Despite the challenges posed to the oil and gas sector by the increased levy, Reeves reassured support for UK carbon capture, storage, and hydrogen projects. Industry leaders like David Whitehouse and George Morrison have acknowledged the sector's importance in the energy transition, emphasizing the need for strategic investments and regulatory actions. The budget also allocates £134 million for port redevelopment to serve as bases for floating offshore wind projects and approves 11 new green hydrogen projects. RenewableUK CEO Dan McGrail praised the commitment to transforming ports into industrial hubs for offshore wind manufacturing, which could attract significant investments and boost the economy by billions of pounds. McGrail further highlighted the potential of green hydrogen in providing energy system stability through storage capabilities. Overall, the budget signals a positive shift towards green energy while acknowledging the challenges faced by the oil industry, promoting a sustainable and economically beneficial energy transition in the UK.