Rishi Sunak not ruling out a windfall tax on energy giants
(Picture: PA Wire)Downing Street appeared on Thursday to open the door to a windfall tax on energy giants if they fail to invest to boost Britain’s supplies.
No10 defended the current stance of rejecting Labour’s call for such a levy to raise more than a billion pounds to ease the cost-of-living crisis hitting millions of families across the country.
However, the Government also seemed to voice some doubts over whether energy companies are making the hoped-for investment to improve, modernise and secure supplies.
The Prime Minister’s official spokesman said: “We recognise that as ministers have set out we don’t think this particular approach (a windfall tax) is the right one.
“But it’s right that we keep all options on the table because these companies must step up to invest and we will want to work with them to do that.
“We think that is the best approach and we will continue to discuss with them how to achieve that.”
Chancellor Rishi Sunak signalled the Government could be prepared to rethink its previous opposition to a windfall tax in an interview with Mumsnet, extracts of which were released on Wednesday.
Highlighting the large sums of money energy companies are receiving thanks to the surge in wholesale oil and gas prices, Mr Sunak warned the firms they needed to increase their investments in boosting UK supplies or else they could face a windfall tax.
“If we don’t see that type of investment coming forward and if the companies are not going to make those investments in our country and in our energy security, then of course that’s (a windfall tax) something I would look at,” the Chancellor said, adding that the idea was not off the table.
Hours earlier the Deputy Prime Minister and Justice Secretary Dominic Raab described Labour’s proposal of a windfall tax would be “disastrous” and damaging to investment. Prime Minister Boris Johnson has repeatedly ruled out the idea.
