Jeremy Hunt has announced a new windfall tax for high-growth energy companies to ease the strain on households and businesses this winter.
Companies like Shell and BP have made huge profits selling gas and oil, while families across the country struggle with the cost of living.
Shell reported a profit of £8 billion for the last quarter, bringing its total for the year to £25 billion.
Campaigners and Labor have repeatedly said the huge profits were an opportunity for another windfall tax.
Barring a major collapse in oil and gas prices, it will be the most profitable year in the energy sector to date.
The company has benefited greatly from a post-pandemic economy desperate for energy to fuel growth.
The Russian war in Ukraine has also pushed gas prices in Europe to record highs, while the price of oil has skyrocketed internationally.
Rishi Sunak launched a 25% windfall tax on oil and gas companies operating in the North Sea when he was chancellor in May.
But this didn’t stop companies from donating billions to shareholders, leading critics like Greenpeace to demand a “proper tax.”
The government also had to step in in September to freeze the price cap, as average households had to pay £5,000 for their energy bills by January 2023.
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