Latest updates: sources suggest idea of windfall tax on energy firms ‘back on the table’ as cost of living crisis continues to bite
Good morning. Boris Johnson is chairing an awayday meeting of cabinet in Stoke-on-Trent later and the cost of living crisis is likely to be high on the agenda. Ministers have always been clear that further significant financial measures to help people are planned for later this year but, with all wings of the Conservative party demanding action sooner, some sort of ‘big bazooka’ intervention may be more immediate.
This morning the Daily Mail reports that the Treasury has started looking at options for a windfall tax on energy companies – something Labour and other opposition parties have been demanding for months. In their story Jason Groves and Mark Shapland write:
Multiple sources said the idea of a tax grab was ‘back on the table’ to help families with the cost of living crisis without pushing public borrowing even higher.
One insider said that a one-off levy was a ‘no-brainer if the chief executives themselves are saying they have no problem with it’.
The disadvantage with those sorts of taxes is that they deter investment in the very things that we [need] … they need to be investing in new technology, in new energy supply.
Politics, Energy industry, UK news, House of Commons, Brexit, Northern Irish politics, Boris Johnson, Liz Truss UK news | The Guardian