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Saturday, July 2, 2022

BP and Shell could face windfall tax as UK energy bills spike

The main opposition Labour Party this weekend called on Prime Minister Boris Johnson to impose a windfall tax on companies pumping oil and gas from the North Sea, saying that the money raised could be used to cut £200 ($272) from soaring household bills.

The party reportedly says the rate of corporate tax the companies pay should be increased by 10 percentage points for a year. That would also allow the government to increase energy subsidies for the poorest households to £400 ($545) per year from £140 ($190).

British consumers will pay roughly £790 ($1,075) more to heat and light their homes this year, according to Bank of America, following a dramatic surge in wholesale energy prices that has caused dozens of UK energy suppliers to collapse in recent months.

Wholesale European gas prices have jumped by 400% over the previous year and electricity prices have increased by 300%,…

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