# Shell to ‘evaluate’ 25 billion pound British investments after windfall tax Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-11-22 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Shell evaluates 25 billion pound plans in UK amid tax rise Meta Description: Shell will assess plans to invest up to 25 billion pounds in Britain over the next decade after government raises taxes on oil and gas producers. URL: https://financedigest.com/shell-to-evaluate-25-billion-pound-british-investments-after-windfall-taxhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-11-21t194244z2lynxmpeiak0xortroptp4shell-britain-1736814833069-compressed.jpg) By Ron Bousso LONDON (Reuters) -Shell said on Monday it will evaluate plans to spend up to 25 billion pounds in Britain over the next decade following the government’s decision to increase a windfall tax on oil and gas producers. “We’re going to have to evaluate each project on a case by case basis,” said Shell’s UK country chair David Bunch told the Confederation of British Industry’s annual conference in Birmingham. When you [tax more you’re going to have less disposable income](https://www.financedigest.com/the-sixteenth-amendment-and-income-tax.html "The Sixteenth Amendment And Income Tax") in your pocket, less to invest. British finance minister Jeremy Hunt last week announced plans to increase a windfall [tax on North](https://www.financedigest.com/top-north-east-financial-adviser-firm-talks-corporation-tax.html "Top North East financial adviser firm talks corporation tax") Sea producers to 35% from 25% in the face of surging energy prices in order to help plug a major hole in public financing. The government forecasts that the tax, which was also extended from the end of 2025 to 2028, will [raise 40 billion](https://www.financedigest.com/delivery-hero-ramps-up-interest-payments-to-raise-1-billion-euro-convertible-bond.html "Delivery Hero ramps up interest payments to raise 1 billion euro convertible bond") pounds. The tax, known as the [Energy Profits Levy](https://www.financedigest.com/eu-will-propose-windfall-levies-on-energy-firms-von-der-leyen-says.html "EU will propose windfall levies on energy firms, von der Leyen says") (EPL), will bring the total taxes on the sector to 75%, among the highest in the world. It nevertheless allows to deduct most investments in new [oil and gas projects from the tax](https://www.financedigest.com/uk-oil-gas-firms-to-leave-years-worth-of-output-in-ground-with-tax-hikes-report.html "UK oil, gas firms to leave year’s worth of output in ground with tax hikes-report"). In a statement on Monday, Shell said that the EPL should be designed to provide incentives to address [oil and gas supply shortages as well as longer-term investments in renewables](https://www.financedigest.com/bank-funding-for-renewables-stagnates-vs-oil-and-gas-report.html "Bank funding for renewables stagnates vs oil and gas – report"). To reach that objective, the EPL should include a “price backstop” in case [oil](https://www.financedigest.com/oil-prices-stable-heading-for-weekly-gain.html "Oil prices stable, heading for weekly gain") and prices drop sharply and should also be expanded to include investments in wind generation, hydrogen and carbon capture technology, Shell said. Shell said earlier this year it plans to invest 20 to 25 billion [pounds](https://www.financedigest.com/commonenergy-mistakes-costing-homeowners-hundreds-of-pounds-each-year.html "Commonenergy mistakes costing homeowners hundreds of pounds each year") over the next 10 years in Britain’s energy infrastructure including oil and gas, offshore wind, electric vehicle charging and hydrogen. The energy sector needs to have confidence that there will now be a stable [investment climate following a period of considerable uncertainty,”](https://www.financedigest.com/battling-uncertainty-is-the-key-to-property-investment-success.html "Battling uncertainty is the key to property investment success") Shell said. (Reporting by Ron BoussoEditing by Nick Zieminski and David Gregorio) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---