Shell Profits £32.2 billion

[KS55]

Do you think that the extra tax monies compared to budget predictions for all petrol companies can be classed as causing inflation?

No, because high taxes take money out of the economy. They do however contribute to fuel prices which seeps into the rest of economic activity.
Think of it like this: if tax was 100% on everything, there would be much less economic activity hence lower inflation. It is an old argument as to where the balance lies. We have had about 38% overall tax burden for a long time but it is probably higher than that now.

 

[Gorton_Tubster]

Workers wanting a pay rise is driving inflation though

I think that's a global lie told to us by the the rich and influential. That people must take the hit, that we need to provide more money and support to the business world to drive growth and "get us all back to normal".

Here's an idea, give all us workers the pay rises we need, give us more than we need even. We will then go out and spend that money and grow the economy. Everyone's a winner (except those business that fail that is).

But it's an unspoken idea that will never get airtime because the rich own the power, the media, and the will. They will tell us anything that ensures they don't lose money profit.

 

[KS55]

I think that's a global lie told to us by the the rich and influential. That people must take the hit, that we need to provide more money and support to the business world to drive growth and "get us all back to normal".

Here's an idea, give all us workers the pay rises we need, give us more than we need even. We will then go out and spend that money and grow the economy. Everyone's a winner (except those business that fail that is).

But it's an unspoken idea that will never get airtime because the rich own the power, the media, and the will. They will tell us anything that ensures they don't lose money profit.

Your idea is not far off what Truss was trying to do. She was planning major tax cuts in a “go for growth” strategy. But you can’t buck the markets who thought that our deficit precluded that. Hence they went for us by selling sterling and killed her off.

 

[SilverFox2]

No, because high taxes take money out of the economy. They do however contribute to fuel prices which seeps into the rest of economic activity.
Think of it like this: if tax was 100% on everything, there would be much less economic activity hence lower inflation. It is an old argument as to where the balance lies. We have had about 38% overall tax burden for a long time but it is probably higher than that now.

Thanks for reply, my thoughts went along the lines of the tax contribution for say petrol products has increased pro rata to its basic price so the Revenue are collecting far more than a budget prediction that was happy to set it at far less.
If the percentage of tax on petrol products and other energy products had been adjusted to recover budget requirements the Gov would be happy would they not?
As it is they are making a massive profit on their prediction which surely has been paid for by the consumer.
Can they really criticize say Shell with a windfall tax when they exaggerated this profit with tax?

 

[KS55]

Thanks for reply, my thoughts went along the lines of the tax contribution for say petrol products has increased pro rata to its basic price so the Revenue are collecting far more than a budget prediction that was happy to set it at far less.
If the percentage of tax on petrol products and other energy products had been adjusted to recover budget requirements the Gov would be happy would they not?
As it is they are making a massive profit on their prediction which surely has been paid for by the consumer.
Can they really criticize say Shell with a windfall tax when they exaggerated this profit with tax?

They are engaged in fiscal consolidation which is a fancy word for increasing taxes and reducing spending. The idea is to reduce borrowing and slow the growth of debt. Increased taxes by stealth is good for gov, cos the headline rate stays the same. Thus, as wages rise people slip into a higher tax band. What you describe is a bit like a stealth tax so I guess they will be happy with it.

 

[Metal Biker]

I trust they'll be investing the majority of these profits into green energies, renewable fuels and improved infrastructure, right?

 

[metalblue]

Those windfall taxes are used to pay for the energy price guarantee.
Shell pays its taxes in the country in which profits are earned, so British people are benefitting only from Shell’s UK profits.
Google “ Shell profit by country” and you should find a table of their income and taxes paid worldwide.

$40bn is the profit Shell made globally. Not what is made from UK customers.

If I look by country in both 2020 and 2021 they lost $1bn in UK. 2022 isn’t available yet and it’s hard to extract what profit shell made on wholesale sales for 2022 with the current data set but I’ve estimated it around $2.2bn (1.5m customers average bill of £2,500 for 2022 with a 50% profit margin and 1.22 cable rate), paradoxically they had to inject £1.5bn in their retail arm in UK who were struggling. So let’s say net profit in UK was $450m on their domestic activities, not really eye watering once you start breaking it down is it? Commercial sales will be more.

https://www.shell.com/investors/results-and-reporting/quarterly-results/_jcr_content/root/main/section/simple_505013828/simple/text_1689406490.multi.stream/1675295770390/c4588bfb8b938904cc08e44fb874ae2891b6e70a/q4-2022-qra-document.pdf

 

[bobbyowenquiff]

Something has gone wrong with the matrix here.

Nothing has changed though, in reality when we were the richest country on the planet the rank and file in this green and pleasant land worked like Dogs and lived in sooty kennels to keep the rich rich.

The most repeated myth is that because of gross GDP "we are the sixth richest country in the world." It is a meaningless figure much repeated by politicians of all parties. GDP per capita (which takes account of population size) is a more valid measure. Using that measure we are one of the poorest countries in Europe.

GDP per Capita by Country 2024

worldpopulationreview.com

But it's even worse than that because GDP is skewed by the City of London effect. The City of London accounts for about 20 per cent of the UK' s GDP but a lot of big financial transactions never filter down to the rest of the country.
Outside London the UK is a very poor country compared to other major nations. We are not "Third World" but we are nowhere near the richest country in the world.

 

[KS55]

The most repeated myth is that because of gross GDP "we are the sixth richest country in the world." It is a meaningless figure much repeated by politicians of all parties. GDP per capita (which takes account of population size) is a more valid measure. Using that measure we are one of the poorest countries in Europe.

GDP per Capita by Country 2024

worldpopulationreview.com

But it's even worse than that because GDP is skewed by the City of London effect. The City of London accounts for about 20 per cent of the UK' s GDP but a lot of big financial transactions never filter down to the rest of the country.
Outside London the UK is a very poor country compared to other major nations. We are not "Third World" but we are nowhere near the richest country in the world.

Never was more sense spoken about GDP.

 

[PPT]

Our local no has had a revamp, it’s a Morrisons daily and it includes a greggs and costa now

It’s to cater for the people with electric vehicles when it takes 30 minutes (if you are lucky) to charge up.