(The think tank nef calls for a windfall tax on the profits of oil companies such as Shell and BP)
By Tom Stevenson Last Updated: 1:25am BST 23/10/2006
A leading think tank has called for a windfall tax on oil companies’ profits, warning that Britain has squandered billions of pounds of North Sea revenues.
The New Economics Foundation (nef) said the UK should follow the example of Norway, which had used its “accidental inheritance” to set up a Petroleum Fund worth $210bn at the end of 2005, equivalent to $45,000 for every person living in Norway. Nef’s call comes as both BP and Royal Dutch Shell prepare to unveil third quarter results this week.
Andrew Simms, policy director at Nef said: “Britain has squandered its windfall of natural resources from North Sea oil and gas. Instead of prudently investing the unearned income from nature to build a safe, clean and green energy supply for the nation, we face unnecessary shortages.”