Hunt announces huge hike in windfall tax in bid to ease energy bills for millions of Brits

This comes after campaigners had long called for Mr Hunt to slap down a tax on the staggering profits raked in by energy giants, which left millions of Britons footing higher bills amid the energy crisis. 

Despite Mr Hunt’s windfall tax measure being able to shore up extra funds for the Treasury, the Chancellor still announced that Ms Truss’ energy price guarantee scheme will increase the £2,500 price cap for typical households from £3,000 for 12 months from April. 

Shadow Chancellor Rachael Reeves told the Commons, responding to Mr Hunt’s budget: “Billpayers will still see prices go up next spring, leaving far too many people wondering how they will make ends meet. For every pound of windfall tax left on the table, people are faced with higher prices on their bills. The Tories failure on energy goes back much further. They closed down gas storage, blocked onshore wind and solar and slashed support for home insulation. 

“Today the Chancellor says he will act on energy efficiency, but I’m afraid it is far too late.” 

Alexander Kirk, Campaigner, Global Witness, speaking exclusively to Express.co.uk, said that the windfall tax doesn’t go far enough.

He said:”It doesn’t go far enough and it allows for big tax loopholes as well, for instance if they invest in other oil fields or energy projects, but it is not very clear on where they need to invest to access those loopholes.

“There are enormous tax exemptions and the Government might not achieve its realised target anyway. They are raising the energy price cap as well. The End Fuel Poverty Coalition has said that 8.6 million people will be in fuel poverty due to the April changes from £2,500 to £3000, which is outrageous. 

“That will mean there will be the equivalent of 20 million people living in fuel poverty in the UK. The money isn’t going directly to help the most vulnerable, so we are quite disgusted by it as well. You will welcome the increase because there was talk of no increase, but it is not going to the right places.”

READ MORE: UK helps ‘keep Ukraine stable’ with crucial energy support

Article source: https://www.express.co.uk/news/science/1697894/energy-crisis-jeremy-hunt-autumn-budget-statement-2022-windfall-tax