No energy company 'in their right mind' would set up in the UK now

Windfall tax may dampen energy sentiment

Eve Maddock-Jones
clock • 4 min read

The recent windfall tax on UK energy companies could put energy firms off setting up in the UK, affecting the country’s shift to renewable energy.

Last month, the UK government U-turned on its decision to implement a levy on oil and gas company profits, charging them a 25% windfall tax in an attempt to fund measures to support households during the cost-of-living crisis. This comes after oil and gas prices hit record highs this year, initially driven by lingering Covid-19 supply chain issues, which were exacerbated by the war in Ukraine. BP and Shell, the UK giants in this space, reported record profits in the first quarter of this year as a result of these tailwinds. Shell's Q1 profits totalled $9.1bn for the first three months...

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