London Daily

Focus on the big picture.
Tuesday, Nov 18, 2025

'No option is off the table' when considering windfall tax on oil and gas firms, Rishi Sunak says

'No option is off the table' when considering windfall tax on oil and gas firms, Rishi Sunak says

Some senior politicians have expressed concern that a windfall tax could deter oil and gas firms from investing in the UK, but some of these firms, such as BP, have said it would make no difference.

There are mixed messages coming from the government about the possibility of a windfall tax on oil and gas firms, as the cost of living crisis continues to ravage the economy.

Speaking earlier on Thursday morning, Chancellor Rishi Sunak said that, while he was "not naturally attracted" to the idea, "no option is off the table".

Prime Minister Boris Johnson said later that the government would "have to look at it", before saying: "I don't think (windfall taxes) are the right way forward."

Then at lunchtime, Mr Johnson's official spokesperson said that, although "we are simply not cutting off options", it had been set out by the prime minister and chancellor that "we do not think that this is the right approach".

Tory MPs are already uneasy about the rising tax burden and in a Commons debate on the Queen's Speech on Thursday, backbencher Sir Christopher Chope called for the govenment to reject the idea.

He said windfall taxes wer "a simplistic solution which always end up hurting the ordinary people who work in this population hardest".

It comes as energy companies continue to benefit from rocketing prices, and British households struggle with record rises in energy bills, higher council tax and National Insurance payments, higher fuel prices and soaring inflation.

Among the reasons behind the price rises are Russia's war in Ukraine, which has resulted in sanctions and supply constraints. There has also been an increase in demand for various things as the world emerges from the worst of the coronavirus pandemic.

There have been calls for the government to implement a windfall tax on oil and gas companies to help fund the recovery - this is a one-off tax on firms that have benefited from something they were not responsible for.

Mr Sunak said: "I'm not naturally attracted to the idea of windfall taxes in general. I find that people fall into two camps on windfall tax.

"There is a group of people who think you can never have a windfall tax, and there's another group of people who think they're a very easy answer to every problem. I'm not in either of those camps - I'm pragmatic about it.

"What I do know is that these companies are making very significant profits right now because of the prices that we're seeing.

"What I want to see is significant investment back into the UK into the economy for jobs and energy security and I want to see that soon. If that doesn't happen then, as I've said, no option is off the table."

Ministers will 'have to look' at windfall tax


Earlier on Thursday, Prime Minister Boris Johnson suggested the government would "have to look" at the idea of a windfall tax.

"The disadvantage with those sort of taxes is that they deter investment in the very things that we need to see them putting them in," Mr Johnson told LBC.

"They need to be investing in new technology, in new energy supplies for the UK."

Bernard Looney, chief executive of BP, recently said that his company's investment plans would not be affected by any windfall tax.

He told the company's AGM on Thursday: "Our 18bn plans are not somehow contingent on whether or not there is a windfall tax."

But he added: "By definition, windfall taxes are unpredictable - and so would challenge investment in home-grown energy... We would love to invest even more - and one of the key foundations of any such decisions will be a stable fiscal environment."

When the notion of BP accepting the idea of a windfall tax was put to him, the prime minister replied: "Well then we'll have to look at it.

"What I say is I want them to make those investments - they've got to be making those investments - in new energy supply for our country."

When pushed again about the possibility of a windfall tax, Mr Johnson said: "I don't like them.

"I don't think they're the right way forward.

"I want those companies to make big, big investments."

The prime minister's official spokesperson said on Thursday: "We do keep options on the table and rightly so, because we need to and that's the right approach given the sort of challenges we're seeing.

"But as the prime minister set out, and the chancellor said, we do not think that this is the right approach. We want these companies that are making profits to make further investments, we've seen some of that already.

"We are working with these companies to encourage them to make further investments and we've seen multibillion-pound investments already made And we will keep doing that.

"But we are simply not cutting off options given the circumstances we are facing."

Newsletter

Related Articles

0:00
0:00
Close
UK Unveils Sweeping Asylum Reforms with 20-Year Settlement Wait and Conditional Status
UK Orders Twitter Hacker to Repay £4.1 Million Following 2020 High-Profile Breach
Popeyes UK Eyes Century Mark as Fried-Chicken Chain Accelerates Roll-out
Two-thirds of UK nurses report working while unwell amid staffing crisis
Britain to Reform Human-Rights Laws in Sweeping Asylum Policy Overhaul
Nearly Half of Job Losses Under Labour Government Affect UK Youth
UK Chancellor Reeves Eyes High-Value Home Levy in Budget to Raise Tens of Billions
UK Urges Poland to Choose Swedish Submarines in Multi-Billion € Defence Bid
US Border Czar Tom Homan Declares UK No Longer a ‘Friend’ Amid Intelligence Rift
UK Announces Reversal of Income Tax Hike Plans Ahead of Budget
Starmer Faces Mounting Turmoil as Leaked Briefings Ignite Leadership Plot Rumours
UK Commentator Sami Hamdi Returns Home After US Visa Revocation and Detention
UK Eyes Denmark-Style Asylum Rules in Major Migration Shift
UK Signals Intelligence Freeze Amid US Maritime Drug-Strike Campaign
TikTok Awards UK & Ireland 2025 Celebrates Top Creators Including Max Klymenko as Creator of the Year
UK Growth Nearly Stalls at 0.1% in Q3 as Cyberattack Halts Car Production
Apple Denied Permission to Appeal UK App Store Ruling, Faces Over £1bn Liability
UK Chooses Wylfa for First Small Modular Reactors, Drawing Sharp U.S. Objection
Starmer Faces Growing Labour Backlash as Briefing Sparks Authority Crisis
Reform UK Withdraws from BBC Documentary Amid Legal Storm Over Trump Speech Edit
UK Prime Minister Attempts to Reassert Authority Amid Internal Labour Leadership Drama
UK Upholds Firm Rules on Stablecoins to Shield Financial System
Brussels Divided as UK-EU Reset Stalls Over Budget Access
Prince Harry’s Remembrance Day Essay Expresses Strong Regret at Leaving Britain
UK Unemployment Hits 5% as Wage Growth Slows, Paving Way for Bank of England Rate Cut
Starmer Warns of Resurgent Racism in UK Politics as He Vows Child-Poverty Reforms
UK Grocery Inflation Slows to 4.7% as Supermarkets Launch Pre-Christmas Promotions
UK Government Backs the BBC amid Editing Scandal and Trump Threat of Legal Action
UK Assessment Mis-Estimated Fallout From Palestine Action Ban, Records Reveal
UK Halts Intelligence Sharing with US Amid Lethal Boat-Strike Concerns
King Charles III Leads Britain in Remembrance Sunday Tribute to War Dead
UK Retail Sales Growth Slows as Households Hold Back Ahead of Black Friday and Budget
Shell Pulls Out of Two UK Floating Wind Projects Amid Renewables Retreat
Viagogo Hit With £15 Million Tax Bill After HMRC Transfer-Pricing Inquiry
Jaguar Land Rover Cyberattack Pinches UK GDP, Bank of England Says
UK and Germany Sound Alarm on Russian-Satellite Threat to Critical Infrastructure
Former Prince Andrew Faces U.S. Congressional Request for Testimony Amid Brexit of Royal Title
BBC Director-General Tim Davie and News CEO Deborah Turness Resign Amid Editing Controversy
Tom Cruise Arrives by Helicopter at UK Scientology Fundraiser Amid Local Protests
Prince Andrew and Sarah Ferguson Face Fresh UK Probes Amid Royal Fallout
Mothers Link Teen Suicides to AI Chatbots in Growing Legal Battle
UK Government to Mirror Denmark’s Tough Immigration Framework in Major Policy Shift
UK Government Turns to Denmark-Style Immigration Reforms to Overhaul Border Rules
UK Chancellor Warned Against Cutting Insulation Funding as Budget Looms
UK Tenant Complaints Hit Record Levels as Rental Sector Faces Mounting Pressure
Apple to Pay Google About One Billion Dollars Annually for Gemini AI to Power Next-Generation Siri
UK Signals Major Shift as Nuclear Arms Race Looms
BBC’s « Celebrity Traitors UK » Finale Breaks Records with 11.1 Million Viewers
UK Spy Case Collapse Highlights Implications for UK-Taiwan Strategic Alignment
On the Road to the Oscars? Meghan Markle to Star in a New Film
×