Energy giants have been told to spend big on British infrastructure projects or face a windfall tax.
The prime minister is expected to demand the increased investment next week as BP and Shell prepare to announce record profits.
Business secretary Kwasi Kwarteng will tell the two companies today that he expects more commitments to invest in Britain as the “quid pro quo” for government support for renewable energy and North Sea drilling.
Downing Street yesterday acknowledged that ministers do not want to impose a windfall tax, while backing Rishi Sunak’s threat to consider one if companies failed to invest in helping the country produce more of its own energy.
Ministers are striking a harder tone as they fear the political fallout of results statements from BP and Shell next week. They are expected to show underlying profit surging to a combined £10bn for the first three months of the year, double the same period last year.
Shell’s commitment to invest £25bn over the next decade has been welcomed, but ministers want to press the company to go further and other oil majors to make similar commitments.
