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 90% in tax relief for any profits they invest.
A Shell spokesperson said the company understands 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,” they continued.
“However, in its current form the levy creates uncertainty about the investment climate for North Sea oil and gas for the coming years.
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“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.”
The new windfall tax includes an investment allowance to incentivise oil and gas firms to invest in “UK extraction”, according to the Treasury.
