United Kingdom

EITI Status Meaningful progress
Joined EITI in 2014
Latest Data From 2017
Latest Validation 2018
Last updated 6 January 2020

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

The UK public registry of ultimate beneficial owners of UK companies is called the People with Significant Control register. It was established in June 2016 under the UK Small Business, Enterprise and Employment Act 2015 and is part of the Companies House Register.  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 oil and gas industry is in its sixth decade of offshore production. Between 2014 and 2017, production on the UK Continental Shelf increased by over 15% - a significant achievement given the basin had previously seen a consistent decline since 2000. The increased production level derived from both improved performance of existing oil and gas fields and the addition of capacity from new field start-ups. In 2017 the UK mining and quarrying industry produced 176 tonnes of primary aggregates. Mining in some parts of the UK is undergoing an upturn with new projects and mines being developed in the North West and North East of England and in Scotland.

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

UK crude oil production by start-up year of field graph

Oil and Gas Production (Sm3 o.e)

Initializing chart.

Coal Production (Tonnes)

Initializing chart.

Revenue collection

The latest EITI disclosures (2017) show that the United Kingdom received net receipts from taxation of £847 million from oil and gas. Revenues were collected through ring-fence corporation tax and Supplementary Charge and license fees. A total of just under £68 million was received for mining and quarrying activities from taxation. Revenues were collected through Mainstream Corporation Tax, payments to The Crown Estate and Crown Estate Scotland.  

Revenue collection: revenues over time

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 activities.  

Main revenue recipients by government entity

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

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 set up a beneficial ownership register in June 2016.In April 2018, the UK Parliamentary voted to require its overseas territories, including the British Virgin Islands and the Cayman Islands, to establish public beneficial ownership registers.

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

UK Report Timeline EITI

Validation

The country was admitted as EITI candidate in 2014.The first Validation of the UK has now been completed and the EITI Board have agreed that the United Kingdom has made “meaningful progress” in implementing the 2016 EITI Standard.

The EITI Board “congratulates the Government of the UK, the Multi-Stakeholder Group (MSG) and local stakeholders on establishing a robust platform to increase public understanding of the social and economic impacts of the UK's extractive industries and enrich public debate on the governance and stewardship of the UK's oil, gas and mineral resources.” The Board said that “the UK’s EITI implementation has effectively set the example for other resource rich countries” and that “the UK’s reporting is recognised by the Board as underscoring the Government’s commitment to transparency and accountability.”

The validation of the UK, carried out by the EITI International Secretariat during 2018, was intended to provide all stakeholders with an impartial assessment of whether EITI implementation in the UK is consistent with the provisions of the EITI Standard. The Validation Report also covered:

  • Impact of EITI in the UK

  • Implementation of activities encouraged by the EITI Standard

  • Lessons learnt in EITI implementation

  • Any concerns stakeholders have expressed

  • Recommendations for future implementation of the EITI

The initial Validation Report was published on 2 May 2019 and contained a number of recommendations and an assessment against each requirement of the Standard. This was followed by the independent Validator’s Report on 16 May 2019, which provided further comments on the initial report. Following further consultation with the UK MSG, on 14th November 2019 the EITI Board agreed an overall assessment of “meaningful progress” for the UK in implementing the 2016 EITI Standard. The Validation identified a number of corrective actions that the MSG need to consider before re-validation. The EITI Board noted that these are not onerous, and it should be possible to address them quickly; they therefore recommended a revalidation within 12 months.

For further information on the UK’s Validation, please see the Board Decision.  

Progress by requirement

We recommend using Adobe Acrobat PDF reader to access all content and features in this document. You can download the program for free here https://get.adobe.com/reader/