Business

Shell says windfall tax ‘creates uncertainty’ about North Sea oil and gas investment

Shell has said the chancellor’s windfall tax “creates uncertainty” about investing in oil and gas in the North Sea.

The tax was announced by Rishi Sunak as part of a £21bn support package aimed at helping people cope with the rising cost of living.

The measure will see oil and gas firms pay a 25% levy on profits, but Mr Sunak has they would get 90% in tax relief for any profits they invest.

Details of Sunak plan emerge as electric car charging costs surge – follow live cost of living updates

A Shell spokesperson said: “We understand the worry for millions of people about how high energy costs are challenging their household budgets – and the need for support to help make ends meet.

“But at the same time, we must sustain investment in securing supplies of oil and gas the UK needs today, while allocating future spend for the low carbon energies we want to build for the future.

“However, in its current form the levy creates uncertainty about the investment climate for North Sea oil and gas for the coming years.

More from Business

“And, longer term, the proposed tax reliefs for investment don’t extend to the renewable energy system we want to drive forward in the UK and invest in very substantially.

“When making plans for the next decade and beyond, we need certainty.”

Articles You May Like

Bank of England governor talks up interest rate cut prospects as inflation eases to 3.2%
World leaders call for Israeli restraint – but many in Jerusalem are not convinced
Standard Chartered arm takes stake in British fintech Algbra
Post Office chief braced for publication of crunch ‘bullying’ report
Disneyland faces pressure to electrify its stinky ‘Autopia’ ride, and quick