Energy Firm Windfall Tax Possible

Published / Last Updated on 13/05/2022

The government is walking a tightrope at present and appears it may make a U-turn by introducing a windfall tax for energy companies during a Rishi Sunak interview on BBC.

Prime Minister, Boris Johnston has held the position that he would rather the UK pull away from any recession by creating more and better paid jobs.  That said, there are increasing calls from all political parties to impose tax as the energy crisis we now find ourselves in has meant huge profits for energy firms.  Rishi Sunak’s comments that they have not discounted applying a windfall tax appears to go against Johnston’s view, or is a U-turn on the cards?


Mr Johnston current stance is that windfall taxes may discourage new investment money coming to UK as firms may see UK as a tax penalty zone if they are too successful.  Opposition parties suggest that energy and fuel firms are making £millions of additional profits everyday with high energy prices, so there is plenty of room for a windfall tax.  They claim that a windfall tax would simply be redistributing money spent by consumers on higher fuel costs, back to poorer consumers so there is plenty of room for a tax.

Comment, we do not always agree with Labour or indeed any other party but in this case, we do.  There are some people really do need help with fuel bills.  In particular, the elderly or disabled that spend more time indoors will spend more on energy than those out at work.

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