Chancellor Rishi Sunak told energy firms that if they don't invest enough in new projects then heavy new tax will be imposed on them. He said that there is no option than to boost energy security. Opposition parties also want to tax oil and gas firms' soaring profits to help households grappling with rising bills. Treasury officials have been ordered to examine a potential tax, a source said.
In an interview, Sunak said that he was not attracted to the idea of a windfall tax, but may be forced to introduce one. Prime Minister Boris Johnson also said that if there is not enough investment, then the government may be forced to look into the proposal.
Labour, the Lib Dems and the SNP are all calling for a windfall tax on their profits to pay for tax cuts and benefit boosts, to help households cope with rising living costs. Sunak's comments mark a change of tone on the idea of a windfall tax that has been pushed by the opposition. The chancellor has previously said it's not a good idea, and reiterated that he's not attracted to such a policy. But he also stressed that there were elevated profits being made right now by the energy companies this time of high prices.
It is time for the energy firms to think carefully about their next move to boost energy security.
