UK to raise $65 billion from windfall tax on energy companies | CNN Business

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The UK will raise $65 billion from a windfall tax on energy companies as it scrambles to balance its budget amid an economic downturn.

UK finance minister Jeremy Hunt announced the measures on Thursday while delivering the government’s medium-term budget, which laid out plans for higher taxes and cuts to public spending. Beginning January 1, the Energy Profits Levy on oil and gas companies will increase from 25% to 35% and remain in place until the end of March 2028. That takes the total tax on the sector to 75%, according to the Treasury.

“I have no objection to windfall taxes if they are genuinely about windfall profits caused by unexpected increases in energy prices,” Hunt said in parliament on Thursday. “Any such tax should be temporary, not deter investment and recognize the cyclical nature of energy businesses,” he added. The United Kingdom will spend an additional £150 billion on energy bills this year compared to pre-pandemic levels, according to Hunt.

 

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A hard winter.

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