Rishi Sunak plans raid on electricity and wind farm profits within a month
MAY 27, 2022
tags: windfall tax
By Paul Homewood
But here is the good news:
From The Times:
The chancellor is preparing to impose a windfall tax on electricity firms within weeks despite provoking a furious backlash from business yesterday by launching a £5 billion raid on North Sea oil and gas producers.
Rishi Sunak yesterday abandoned months of opposition to a windfall tax by announcing a new 25 per cent levy on the “extraordinary profits” that oil and gas companies are making after prices surged, partly driven by Russia’s invasion of Ukraine.
Defending the U-turn to fund relief for consumers facing record energy bills, Sunak declared: “We all make mistakes and being able to change course is not a weakness, it is a strength.”
The chancellor threatened to extend the levy to power-plant owners, saying that “certain parts of the electricity-generation sector are also making extraordinary profits” and that he was “urgently evaluating” the scale of these profits, and the steps to take, following moves by other European countries to tax power companies.
The Times understands that Sunak intends to announce plans to tax electricity generators within the next month. “It’s called the energy profits levy for a reason,” a government source said. “It’s a broad tax, we want to move sooner rather than later.” The tax on electricity generators would raise in the region of “the low digit billions”.