Connect with us

Hi, what are you looking for?

Editor’s Pick

Shell weighs up £25bn UK spending pledge after Hunt toughens windfall tax

Shell has warned it could ditch its pledge to invest £25bn in the UK’s energy sector, after Chancellor Jeremy Hunt beefed up the windfall tax last week.

David Bunch, chairman of Shell’s UK operations, confirmed the energy giant will “evaluate” its spending pledges – which includes 75 per cent in low carbon and renewable projects – and push for changes to the expanded Energy Profits Levy.

“We’re going to have to evaluate each project on a case-by-case basis. When you tax more you’re going to have less disposable income in your pocket, less to invest,” he told the CBI Conference in Birmingham yesterday.

His comments are the latest blow to the UK’s ambitions to ramp up investment in the North Sea to boost the country’s supply security and stave off blackouts this winter.

Harbour Energy said that it was “reviewing” the impact of the tax on its UK operations, and would pursue talks with ministers and officials.

It is understood that Shell has not yet jettisoned the £25bn commitment, but would look at investment on a case-by-case basis.

When approached for comment, a Shell spokesperson said the company recognised the burden “increased prices have across society” but argued taxes needed to be designed to boost investment as well as raise revenues to support people.

Shell is now calling for the inclusion of a price backstop to recognise the reality that wholesale prices move down as well as up, and an expanded capital allowance to include further decarbonisation investments such as CCUS, hydrogen production and wind generation

The Government ramped up the windfall tax following another round of bumper profits across the oil and gas sector in the third quarter of trading this year.

Earnings were fuelled by soaring oil and gas prices, with commodities booming this year following Russia’s invasion of Ukraine and a Kremlin-backed supply squeeze on Europe.

Last month, Shell reported third quarter profits of £8.1bn ($9.45bn) for the three-month trading window, with cash flow from operations clocking in at £10.76bn ($12.5bn).

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Editor’s Pick

<?xml encoding=”utf-8″ ??> The exodus of workers from the jobs market over the pandemic has weakened prospects for Britain’s economic growth, the governor of...

News

Elon Musk talks about his company’s Starlink project at the Mobile World Congress, Barcelona, Spain, June 30, 2021. — BRISA PALOMAR / PACIFIC PRESS/SIPA...

News

PHILSTAR FILE PHOTO The National Economic and Development Authority (NEDA) has approved seven “high-impact” projects, ranging from agriculture to transportation, the agency’s top official...

News

Television (TV) advertising is shifting toward addressable TV, a service that allows advertisers to show different ads to different audiences watching the same program,...

Editor’s Pick

<?xml encoding=”utf-8″ ??> Wayne Janse Van Rensburg, Chief Executive of education company Learndirect talks to Business Matters about the inspiration behind their business, which...

Editor’s Pick

<?xml encoding=”utf-8″ ??> Rokt, the global leader in ecommerce technology, is today announcing a new partnership with Oracle Red Bull Racing, the leading Formula...

You May Also Like

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.