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Future of British Business

UK Tax Grab on Power Profits Likely to Struggle With Complexity

  • Government source says there’s no timing for a windfall tax
  • Measure could hamper green investment needed for transition
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Windfall Taxes Will Raise Price of Crude, Analyst Sen Says

The UK left the door open to extending a windfall tax on power generators, but it’s an option seen as difficult to implement and a threat to green investment.

There’s no timings yet for such a measure, a government official said in response to a story in The Times that it could happen within weeks. The idea of a tax on power producers’ profits was floated early this week but didn’t make it into Thursday’s £15 billion ($19 billion) energy policy package, which included a windfall levy on oil and gas companies.