Adam Scorer calls for ‘targeted financial support’ on energy bills
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BP’s annual profits more than doubled in 2022 to $28billion (£23billion), while Shell announced record annual profits of $39.9billion (£32.2billion) as a result of higher gas prices following Russia’s invasion of Ukraine last February. So do you think energy giants should face tougher windfall tax measures? Vote in our poll.
The significant increases in profits led Prime Minister Rishi Sunak to introduce a 25 percent Energy Profits Levy as Chancellor, last May. In his Autumn Statement, Chancellor Jeremy Hunt announced an increase to 35 percent in January 2023 and that it would stay in place until March 2028.
The windfall tax applies to profits made from extracting UK oil and gas, and the Government has said it wants to see reinvestment of money made to support the economy, and jobs, while improving the UK’s energy security.
The Labour Party called for Britain’s energy profits levy to be revamped last week to cover more of the earnings made. Shadow Chancellor Rachel Reeves said last month that her party would expand the windfall tax to be the same as Norway’s 78 percent and backdate it to the start of 2022. The move would generate an additional £13billion across 2022 and 2023.
She said in a speech to the Fabian Society: “Millions of households are still looking to a 40 percent increase in their energy bills. At the same time, energy companies continue to enjoy record profits. That cannot be right.”
Since October, British households have been paying an average £2,500 per year on their energy bills, which is set to rise to £3,000 by April. Jonathan Noronha-Gant, Global Witness, Senior Campaigner has urged Britain’s oil companies to support the nation. He said: “It would be good to see BP genuinely backing Britain rather than profiting off it.”
So what do YOU think? hould BP and Shell face tougher windfall tax after massive profits? Vote in our poll and leave your thoughts in the comment section below.
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