Shell to Rethink UK Investment Amid Windfall Tax Hike

Shell will rethink its plan to invest around £25bn in UK operations, following the government’s decision to increase a windfall tax on energy companies, David Bunch, chairman of Shell UK said.

• Shell would re-examine each of its projects on a "case-by-case basis" after Jeremy Hunt increased the levy on "excess" oil and gas profits from 25% to 35% in last week's autumn statement.
• “When you tax more you’re going to have less disposable income in your pocket, less to invest”, he said.
• "We outlined an investment package five months ago of £25bn, and the one thing I said was we really need a stable fiscal environment to make sure we can get that investment out of the door," he said.
• The Association of British Independent Exploration companies earlier this month warned the chancellor before the autumn statement that an increase in windfall tax would hinder the sector’s appetite and financial ability to invest in new projects.