Nadhim Zahawi refuses to rule out new windfall tax as Shell doubles profits to £8billion
27 October 2022, 10:03 | Updated: 27 October 2022, 10:49
Nadhim Zahawi has refused to rule out a new windfall tax on energy firms, after Shell saw its profits more than double to around $9.45billion (£8billion) between July and September.
The huge figure is up from the $4.2billion the company reported for the same period last year.
It comes after Shell recorded record profits of $11.5billion in July as people across the UK are facing soaring bills amid a crisis over the cost of living crisis.
Shell's CEO has said the Government should tax energy companies further to "protect the poorest" in society.
A 25% levy on energy profits was brought in in May by PM Rishi Sunak during his time as Chancellor, but the tax only applies to profits that are made in the UK.
This morning, Tory party chairman Nadhim Zahawi told LBC that the PM and the Chancellor Jeremy Hunt could consider extending the tax, as they look to plug gaps in the nation's finances.
Mr Zahawi stressed that as Chancellor, the PM had brought in the current windfall tax on energy firms - which is raising £5 billion - and that it was designed to encrourage investment in the UK.
Asked if the tax would be extended, Mr Zahawi told Nick Ferrari: “These are tough decisions and I know the Chancellor and the Prime Minister will be looking at everything.
Pressed by Nick again on the issue, he added: “I would not pre-empt any decisions but absolutely the Chancellor and the Prime Minister will look at every decision.”
The Chancellor is set to present a full Autumn Statement laying out the governments tax and spend plans on November 17.
