United Kingdom

EITI Status Yet to be assessed against the 2016 Standard
EITI Member Since 2014
Latest Data From 2015

Overview

The country is a major oil and gas producer.  In addition, it produces small amounts of coal, industrial materials such as kaolin and potash, construction materials. There has been some debate about extractive industry taxation and environmental impacts.

Beneficial ownership disclosure

United Kingdom committed to include beneficial ownership disclosure in its first EITI Report published in April 2016, but only one company provided the information. The UK public registry of ultimate beneficial owners of UK companies established under the UK Small Business, Enterprise and Employment Act 2015 is due to be launched in June 2016.  Further information about the UK's beneficial ownership work is available here and here.

The UK signed up to the Extractive Industries Transparency Initiative, so that we too play our part in ensuring that people around the world benefit fairly from the natural resources of the countries in which they live. Mineral wealth for developing countries should be a blessing, not a curse.
HE David Cameron, former Prime Minister of the United Kingdom.

Production

The United Kingdom is a leading producer of oil (the world’s 23rd largest, the EU’s largest), gas (20th, the EU’s second-largest) and coal (25th), but also produces a range of industrial and construction materials. The country is also an emerging producer of tungsten and tin. Ongoing development of oil and gas is taking place in the North Sea, not only offshore Scotland but also England and Wales.  

Natural resources 

The United Kingdom has rich deposits of crude oil, natural gas, coal, tungsten, tin as well as a range of industrial and construction materials. Abundant oil and gas reserves are found offshore, while coal deposits are largely centred in Scotland, England and South Wales.

CommodityReservesUnitSignificance
Oil4,339million tonsMostly offshore. Proven and probable reserves, not possible resources.
Gas2,893billion Sm3Mostly offshore. Proven and probably reserves, not possible resources.
Coal4,000million metric tonsPotential resources. The UK has around 166 million tons of coal reserves operating mines and those in planning stages. There are another 167 million tons of coal in projects at pre-planning stage.
Tungsten318,000metric tonsEngland hosts the world's four largest known tungsten deposit, the Drakelands mine near Plympton, Devon.
Tin32,700metric tonsLocated at the Drakelands Mine near Plympton, Devon.
KaolinN/AUK deposits of kaolin are concentrated in Cornwall and Devon and world-class in terms of size and quality.
Ball clayN/ADeposits are centred in Devon and Dorset, mainly used for the manufacture of white ware ceramics
PotashN/AYorkshire has one of the largest proven world deposits of potassium-rich minerals.
SaltN/AEngland accounts for 95% of UK salt production, 80% of which takes place in Cheshire; the Boulby potash mine in Yorkshire is another large centre
FloursparN/AProduction is centred at the Southern Pennine ore field in the Peak District National Park.

UK crude oil production by start-up year of field

Oil and Gas Production (Sm3 o.e)

Initializing chart.

Coal Production (Tonnes)

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Revenue collection

The latest EITI disclosures (2014) show that the United Kingdom received GBP 3.233 billion from extractive industry taxation. Almost all (over 99%) of these revenues came from hydrocarbons, with the rest from mining. Revenues were collected through ring-fence corporation tax (77%), petroleum revenue tax (19%) and license fees (2%).

Initializing chart.

Disbursed revenues by company: Sankey

Revenue allocation

HM Revenue and Customs manages all of the British state’s revenues from the extractive industries, aside from S106 payments levied by local authorities and the levy managed by the Oil and Gas Authority. Northern Ireland also receives a population-based share of revenues from petroleum license awarded on its offshore.  

Innovations

​The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.

  • One of the United Kingdom’s objectives for EITI implementation is to support moves towards common global reporting standards in oil, gas and mining.

  • The United Kingdom is developing a publicly available register with information on who owns and controls companies.

  • The 2014 EITI Report provides five-year oil and gas production, budget and trade balance forecasts. Disaggregated employment figures are also provided for mining and quarrying.  

Implementation

EITI is updating its workplan, including follow-up on recommendations from the first EITI Report and considering means of improving the efficiency of EITI reporting.

Governance

The UK government has taken a strong leadership role on the global tax transparency debate.  The EITI was set up under its leadership back in 2002.  The UK then supported the EU country-by-country reporting, committed to implement the EITI in 2013, placed tax and transparency at the centre of the G8 summit in 2013, and committed to set up a beneficial ownership register by the end of 2016.

At a joint press conference with President of France François Hollande on 22 May 2013, Prime Minister David Cameron announced that the United Kingdom would implement the EITI. The commitment was reaffirmed at the 6th EITI Global Conference in Sydney in May 2013 and in the United Kingdom’s second OGP National Action Plan published at the 2013 OGP London Summit. The first EITI launch event took place on 9 July 2013 and the nominations to the multi-stakeholder group (MSG), composed of four members from each stakeholder group, were finalised in September 2013. The United Kingdom submitted its EITI Candidature application on 5 August 2014, approved by the EITI Board on 15 October 2014.

Timeline

Validation

United Kingdom's Validation against the Standard will commence on 1 July 2018. The country was admitted as EITI candidate in 2014.