UK increases windfall tax on profits of oil, gas companies

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Britain's Treasury chief says he's increasing the windfall tax on the profits of oil and natural gas companies as he announced an emergency budget aimed at restoring the nation's economic credibility and patching up its battered finances.

Jeremy Hunt said Thursday that the windfall tax will rise from 25% to 35% from January 2024 to March 2028 and that electricity generators will have to pay a new temporary levy of 45%.Energy companies such as London-based BP and Shell have reported huge profits in recent months as Russia's war in Ukraine pushes up energy prices worldwide.

Just three weeks after taking office, Prime Minister Rishi Sunak's government faces the challenge of balancing the nation's budget while helping millions of people slammed by a cost-of-living crisis as Russia's war in Ukraine pushes up energy prices and slows economic growth. The emergency budget statement aims to restore the government's financial and political credibility after former Prime Minister Liz Truss announced 45 billion pounds in unfunded tax cuts that torpedoed investor confidence, sent the pound to record lows against the U.S. dollar and sparked emergency central bank intervention. Truss was forced to resign six weeks after taking office.

Among those who need help the most are Magdelena Prosenic, a single mom who described her struggles feeding her two young children as she waited in line Wednesday at a community food pantry in south London. Hunt and Sunak, who replaced Truss as Conservative Party leader and prime minister last month, have reversed most of Truss' policies, while pledging that the government will pay its bills and start reducing debts built up over the past 15 years.

 

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We need that here and add the gouging grocery stores.

Canada should follow suit

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