London Daily

Focus on the big picture.
Wednesday, Dec 17, 2025

£32bn Shell profits fuel new windfall tax storm

£32bn Shell profits fuel new windfall tax storm

The vast scale of the profit at the multinational is set to trigger calls for an even bigger increase in windfall tax
Shell was engulfed in a new windfall tax furore on Thurday as it revealed that soaring oil and gas prices following Russia’s invasion of Ukraine had sent its profits to a record £32.2 billion.

The vast profits — equivalent to just over £1,000 a second — were among the biggest ever made by a British company and the largest in Shell’s 115-year history.

They immediately led to demands for a bigger levy on energy giants to help fund extra support for families and businesses struggling with the cost-of-living crisis.

Shell said it is due to pay £100 million in UK tax for 2022 and expected to pay £405 million for this year. Opposition politicians seized on the vast profits with Ed Miliband, Labour’s shadow climate and net zero secretary, labelling them the “windfalls of war”.

By another measure of profit often used in the City known as EBITDA, Shell made £68.3 billion.

Rishi Sunak, who was marking his first 100 days as Prime Minister on Thursday, first imposed a windfall tax on oil and gas producers operating in the UK and the North Sea in May last year, a few months after Russian tanks rolled into Ukraine.

The levy was increased by Chancellor Jeremy Hunt in the Autumn Statement from 25 per cent to 35 per cent, and extended until 2028 — three years longer than originally planned. It is set to raise £40 billion over six years. As well as being one of the world’s oil and gas “supermajors”, Shell also supplies energy to 1.4 million UK households and runs one of Britain’s biggest network of fuel forecourts.

Shell and its rival BP have faced mounting criticism for the extra profits they have made since the start of the Ukraine war last February.

BP chief executive Bernard Looney once described the company as a “cash machine” because of the amount of money it makes when energy prices are elevated. BP reports its 2022 results next week.

The Shell profit is one of the biggest in British corporate history, a record currently held by Vodafone which posted £59.2 billion in 2014, although this was artificially boosted by the sale of its stake in US mobile network Verizon.

Labour’s Mr Miliband accused Mr Sunak of letting the energy giants “off the hook” by leaving “billions on the table” by refusing to implement a “proper” windfall tax.

“They [the Government] were dragged kicking and screaming to do a windfall tax... they are levying it at a lower rate than other countries and we’ve called for it to be at 78 per cent,” he told BBC Radio 4’s Today programme. “But thirdly, and crucially, and this is head scratching to put it mildly, they have built in a massive loophole just for fossil fuel companies, not for other energy companies, so that if they make so-called investments, they get massive tax breaks for that.”

Liberal Democrat leader Sir Ed Davey said: “No company should be making these kind of outrageous profits out of Putin’s illegal invasion of Ukraine.

“Rishi Sunak was warned as Chancellor and now as Prime Minister that we need a proper windfall tax on companies like Shell and he has failed ttake action.”

Despite paying more than £10 billion in tax globally on its 2022 profits, only five per cent of Shell’s revenues come from its UK business, thereby limiting the amount the UK Government can claw back in taxes here.

Shell chief executive Wael Sawan defended the energy giant’s contribution to the UK saying: “We believe in the significant potential for our energy investments in the UK and we hope people will see the contribution we make.” He added that he was a “firm believer that governments will recognise companies like Shell are a big part of the solution”.

The Government is currently limiting gas and electricity bills, through its Energy Price Guarantee, meaning that a household using a typical amount of energy will pay £2,500 a year.

That is set to rise in April to £3,000 adding further strain on households experiencing the worst cost-of-living crisis in decades.

Market analysts have forecast that energy bills will fall in the second half of the year as gas prices drop thanks to lower demand, partly caused by the milder than expected winter in Europe.

At lunchtime on Thursday the Bank of England’s Monetary Policy Committee was expected to lift interest rates again by 0.5 percentage points to four per cent, adding to the misery for millions of homeowners who face a sharp rise in mortgage payments. Its base rate was already at a 14-year high.

But Mr Hunt and Mr Sunak have pledged to halve inflation this year, meaning that there could be more interest rate hikes in the coming months, as they try to get spiralling prices back under control.
Newsletter

Related Articles

0:00
0:00
Close
Trump Files $10 Billion Defamation Lawsuit Against BBC as Broadcaster Pledges Legal Defence
UK Says U.S. Tech Deal Talks Still Active Despite Washington’s Suspension of Prosperity Pact
UK Mortgage Rules to Give Greater Flexibility to Borrowers With Irregular Incomes
UK Treasury Moves to Position Britain as Leading Global Hub for Crypto Firms
U.S. Freezes £31 Billion Tech Prosperity Deal With Britain Amid Trade Dispute
Prince Harry and Meghan’s Potential UK Return Gains New Momentum Amid Security Review and Royal Dialogue
Zelensky Opens High-Stakes Peace Talks in Berlin with Trump Envoy and European Leaders
Historical Reflections on Press Freedom Emerge Amid Debate Over Trump’s Media Policies
UK Boosts Protection for Jewish Communities After Sydney Hanukkah Attack
UK Government Declines to Comment After ICC Prosecutor Alleges Britain Threatened to Defund Court Over Israel Arrest Warrant
Apple Shutters All Retail Stores in the United Kingdom Under New National COVID-19 Lockdown
US–UK Technology Partnership Strains as Key Trade Disagreements Emerge
UK Police Confirm No Further Action Over Allegation That Andrew Asked Bodyguard to Investigate Virginia Giuffre
Giuffre Family Expresses Deep Disappointment as UK Police Decline New Inquiry Into Andrew Mountbatten-Windsor Claims
Transatlantic Trade Ambitions Hit a Snag as UK–US Deal Faces Emerging Challenges
Ex-ICC Prosecutor Alleges UK Threatened to Withdraw Funding Over Netanyahu Arrest Warrant Bid
UK Disciplinary Tribunal Clears Carter-Ruck Lawyer of Misconduct in OneCoin Case
‘Pink Ladies’ Emerge as Prominent Face of UK Anti-Immigration Protests
Nigel Farage Says Reform UK Has Become Britain’s Largest Party as Labour Membership Falls Sharply
Google DeepMind and UK Government Launch First Automated AI Lab to Accelerate Scientific Discovery
UK Economy Falters Ahead of Budget as Growth Contracts and Confidence Wanes
Australia Approves Increased Foreign Stake in Strategic Defence Shipbuilder
Former UK Prime Minister Boris Johnson proclaims, “For Ukraine, surrendering their land would be a nightmare.”
Microsoft Challenges £2.1 Billion UK Cloud Licensing Lawsuit at Competition Tribunal
Fake Doctor in Uttar Pradesh Accused of Killing Woman After Performing YouTube-Based Surgery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
UK Officials Push Back at Trump Saying European Leaders ‘Talk Too Much’ About Ukraine
UK Warns of Escalating Cyber Assault Linked to Putin’s State-Backed Operations
UK Consumer Spending Falters in November as Households Hold Back Ahead of Budget
UK Orders Fresh Review of Prince Harry’s Security Status After Formal Request
U.S. Authorises Nvidia to Sell H200 AI Chips to China Under Security Controls
Trump in Direct Assault: European Leaders Are Weak, Immigration a Disaster. Russia Is Strong and Big — and Will Win
"App recommendation" or disguised advertisement? ChatGPT Premium users are furious
"The Great Filtering": Australia Blocks Hundreds of Thousands of Minors From Social Networks
Mark Zuckerberg Pulls Back From Metaverse After $70 Billion Loss as Meta Shifts Priorities to AI
Nvidia CEO Says U.S. Data-Center Builds Take Years while China ‘Builds a Hospital in a Weekend’
Indian Airports in Turmoil as IndiGo Cancels Over a Thousand Flights, Stranding Thousands
Hollywood Industry on Edge as Netflix Secures Near-$60 Bln Loan for Warner Bros Takeover
Drugs and Assassinations: The Connection Between the Italian Mafia and Football Ultras
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
The Disregard for a Europe ‘in Danger of Erasure,’ the Shift Toward Russia: Trump’s Strategic Policy Document
Two and a Half Weeks After the Major Outage: A Cloudflare Malfunction Brings Down Multiple Sites
UK data-regulator demands urgent clarity on racial bias in police facial-recognition systems
Labour Uses Biscuits to Explain UK Debt — MPs Lean Into Social Media to Reach New Audiences
German President Lays Wreath at Coventry as UK-Germany Reaffirm Unity Against Russia’s Threat
UK Inquiry Finds Putin ‘Morally Responsible’ for 2018 Novichok Death — London Imposes Broad Sanctions on GRU
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
×