Sunak assures Brits he will address energy firms’ windfall tax as inflation rises

Rishi Sunak says he ‘stands ready’ against inflation

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Rishi Sunak said he was fully prepared to address the economic issues in the UK as the nation struggles to cope with the cost of living crisis.

The Chancellor said: “I’ve always said I stand ready to do more as we learn more about the situation.

“In July, the National Insurance threshold will be raised by £12,500, that’s the biggest personal tax cuts we’ve seen in a decade.

“Thirty million people are going to see something like a £330 tax reduction because of that tax cut, that’s very significant.”

Mr Sunak said he would continue his pledge to address the financial crisis by reducing tax pressures on household income.

He continued: “I’ve said very clearly that the direction of travel on taxes is to reduce them from where we are over time. 

“Of course I want to do that, I’ve been very clear about that.”

The Chancellor faced questions concerning his continued opposition to imposing a windfall tax on energy companies that have enjoyed considerable annual profits.

Mr Sunak said: “I’m not naturally attracted to the idea of windfall taxes in general.

“People fall into two camps, often, on windfall taxes.

“There is a group of people who think you could never have a windfall tax and then there’s another group of people who think it’s a very easy answer to every problem.

“Now, I’m not in either of those camps, I’m pragmatic about it.”

Read more: Sunak outlines cost of living busting plan as UK ‘faster than France’

He continued: “These companies are making very significant profits right now because of the unique price we’re seeing. 

“What I want to see is significant investment back into the UK, into the economy for jobs and energy security and I want to see that soon.

“If that doesn’t happen, then, as I’ve said, no option is off the table.”

The Chancellor has suggested a windfall tax could prevent essential investment in domestic energy infrastructure.

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Both the Prime Minister and The Chancellor have expressed their desire to advance domestic energy projects within the UK.

Sustainable energy production and storage within the UK would protect the nation from global fluctuations in energy prices.

However, Mr Sunak warned the introduction of a windfall tax could still be a possibility if the profiting energy companies did not reinvest their funds.

The Chancellor highlighted investments should occur “soon” if the energy companies hope to avoid an urgent windfall tax.

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