Sunak hints at U-turn on windfall tax for oil and gas industry

Sunak hints at U-turn on windfall tax for oil and gas industry

Rishi Sunak has hinted that he could perform a U-turn and introduce a windfall tax on UK oil and gas companies, unless they ramp up investment in new energy projects.

The chancellor has long argued against such a levy, which is backed by Labour, on the grounds that it would deter investment in the North Sea and in green-energy projects.

But he is under growing pressure to offer more help to families struggling with the cost-of-living crisis and on Wednesday suggested that he might reconsider his position.

Speaking to the online parents’ forum Mumsnet, the chancellor said he had not introduced a windfall tax in last month’s Spring Statement, in spite of rocketing profits in the oil and gas sector, because he wanted companies to invest.

He highlighted the announcement by Shellthis month that it planned to invest £20bn-£25bn in the UK energy system over the next decade and had earmarked more than 75 per cent for low- and zero-carbon projects, including offshore wind, hydrogen and electric-vehicle infrastructure.

But he added: “What I would say is that if we don’t see that type of investment coming forward, and companies are not going to make those investments in our country and energy security, then of course