‘No options off the table’ as Rishi Sunak warms to windfall tax
Rishi Sunak has said he is “pragmatic” about the idea of introducing a windfall tax on energy companies, insisting “no options are off the table,” in the latest hint the government may be preparing fresh measures to tackle the cost of living crisis.
Labour has been calling for a windfall tax on the oil giants, which have benefited from rocketing global prices, with shadow chancellor, Rachel Reeves, suggesting the proceeds be used to cut domestic energy bills.
Both Sunak and the prime minister, Boris Johnson, had previously suggested such a tax would disincentivise investment in the North Sea.
They appear to be warming to the idea, however, amid intense pressure to do more to help hard-pressed households weather surging inflation. It is understood Treasury officials are working up possible options.
Sunak told the BBC in an interview on Thursday that he was “not naturally attracted to windfall taxes in general,” but was “pragmatic about it”.
“These companies are making a significant amount of profit at the moment because of these very elevated prices. What I want to see is significant investment back in the UK economy to support jobs, to support energy security, and I want to see that soon. If that doesn’t happen, then no options are off the table.”
Sunak had already hinted at a shift in his position in a Mumsnet interview last week. Business secretary, Kwasi Kwarteng, is known to be less enthusiastic about the idea, however, saying, “I think it discourages investment.”
Boris Johnson appeared to echo that view on Thursday, telling LBC: “The disadvantage with those sorts of taxes is that they deter investment in the very things that they need to be investing in – new technology, in new energy supply.” He did not rule out such a
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