Chancellor Rishi Sunak has ordered officials to draw up plans for a possible windfall tax on more than £10bn of excess profits by electricity generators, including wind farm operators, on top of a hit on North Sea oil and gas producers.
Treasury officials are working on a scheme that would go well beyond Labour’s original windfall tax plan, as Sunak looks to raise billions of pounds of financial support for households struggling with soaring energy bills.
“North Sea oil and gas producers are only half the picture,” said one government insider. “The other half is that high gas prices have led to some pretty substantial windfall profits for all electricity generation.”
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