, Columnist
Sunak’s Tax Helps Consumers But Misses the Energy Mark
A misguided levy overlooks pressing needs, such as storage and energy-inefficient buildings
LNG giant
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
The UK government’s 25% windfall tax on oil and gas company profits, along with the accompanying investment allowance that will let them avoid most of it, will do little to address the country’s pressing energy needs.
Speaking in parliament on Thursday, Chancellor of the Exchequer Rishi Sunak, didn’t dare utter the words “windfall tax” — something the opposition parties had been urging him to impose for months — referring to it instead as a special levy. It amounts to the same thing. The tax will remain in place until oil and gas prices return to “historically more normal levels,” although he gave no hint as to what those levels might be.