Rishi Sunak has not ruled out more support with energy bills in the autumn (Justin Tallis/PA)
(Picture: PA Wire)The announcement today of Shell’s underlying profits of £7.2 billion – just two days after BP posted a £5 billion announcement – has raised the heat once again on big energy firms taking in high revenues.
All the while, many people are seeing their costs going up – and for lots of mortgage payers and borrowers, the announcement today from the Bank of England of interest rates rising presented a fresh blow.
A one-off tax can be imposed by the government when companies benefit financially from conditions outside of their control. Windfall taxes have happened in the past, for example in 1997 when Labour introduced it to utilities privatised by the Tory government, who themselves imposed a tax upon profiteering banks in 1981.
While bill-payers would no doubt welcome seeing some of their money returning from the energy companies, the government continues to argue against it. Prime Minister Boris Johnson has said it would discourage investments that ultimately keep prices lower, while Chancellor Rishi Sunak wants the profiting energy firms to continue to offer energy security.
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