One-off £10bn tax to be slapped on energy giants to fill financial black hole | Politics | New


Business Secretary Grant Shapps said companies were “clearly going to contribute more” ahead of Thursday’s autumn statement, when windfall taxes could be extended.

The levy is expected to bring in £7billion this year, a further increase of £3billion in 2023. Mr Shapps called it “completely fair” to pay back to help consumers.

Speaking at the COP27 summit, he said: “We have already introduced a one-off tax which will cost around £7billion and subsidize the £700 people will recoup on average from their energy bills.

“Next year it will be worth £10bn and we have the autumn statement coming. I won’t go any further. We’ll leave that to the Chancellor.

Millions of households are grappling with the cost of living crisis as energy company profits have soared.

BP made £7.1bn between July and September, more than double its profit for the same period last year. He expects to pay around £680million in windfall tax this year.

Shell, which reported its second-highest quarterly global profit on record, said it would pay none as it would offset investments in the UK from the tax. Critics say the company took advantage of a loophole brought by Rishi Sunak when he introduced the initial windfall tax as chancellor in May this year.

Now prime minister, he met his chancellor Jeremy Hunt yesterday to discuss tax hikes and spending cuts ahead of Thursday.

An extension of the windfall tax could help the Treasury plug part of the £60billion hole in Britain’s finances. Reports suggest up to £40bn could be raised over five years.

Mr. Sunak and Mr. Hunt would like to maximize revenue by increasing the rate by 25-30%. And there are suggestions the policy could be extended for three years to 2028 and expanded to include electricity generators.

Steve Brown, chief executive of Orcadian Energy, writing in today’s Daily Express, said: “The windfall tax can act as a financial bridge, with some BP and Shell profits going via tax credits to investing in new national suppliers that can help consolidate our energy. supply.”

Mr Shapps said the UK would continue to use and develop North Sea oil and gas as long as it generated lower carbon dioxide emissions than imported gas.

He added: “I don’t want to allow dirty fuels. I want to get a license for clean offshore wind and I’m very keen to get nuclear going again. I have to look at the overall mix. Whatever we do, I will ensure that the path we take is one of decarbonization. »

The Department for Business, Energy and Industrial Strategy (Beis) has announced an investment of £65m to help make green technology cheaper and more accessible.

Mr Shapps said it is designed to create green jobs for generations at home and abroad.

Meanwhile, Mr Sunak discussed solar and wind power projects with King Abdullah II of Jordan during talks in Downing Street yesterday.

And in Egypt, US President Joe Biden, who is due to meet Mr Sunak at next week’s G20 summit in Bali, affirmed US commitment to tackling climate change.

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