Skip to content 
Search

Latest Stories

Rishi Sunak ‘not naturally attracted’ to windfall tax idea

Rishi Sunak ‘not naturally attracted’ to windfall tax idea

PRIME minister Boris Johnson warned that a windfall tax could deter investment by energy companies, amid the indications that the government could choose to be practical about such a levy.

Rishi Sunak, the chancellor of the exchequer, said he was "pragmatic" about the idea of a windfall tax on the profits of oil and gas companies as a possible way to raise money to provide more help to households facing the strain of higher energy prices.

"I'm not naturally attracted to the idea of them (windfall taxes) but what I do know is that these companies are making a significant amount of profit at the moment because of these very elevated prices," Sunak told BBC television.

He repeated his view that no options were off the table if oil and gas companies did not provide significant investment soon in Britain.

"I find there are two camps of people actually, there's some people who think windfall taxes can never be the answer. And then there are other people who think windfall taxes are an easy, quick, simple answer to solve every problem," he said.

"I'm not in either of those schools of thought, I'm pragmatic about it."

Asked about the chance of fresh support for households, Sunak said he had previously said he was ready to do more and he wanted to see how energy costs develop ahead of a half-yearly review in October which would "help us to get the decisions right."

Johnson said on Thursday (12) he did not believe a windfall tax on global energy firms was the right way forward and he wanted to ensure the government did not deter investment by energy companies.

A spike in oil prices due to the war in Ukraine has helped major oil firms book billions of pounds in earnings this year, prompting calls from some politicians for a windfall tax.

"I don't like them. I didn't think they're the right thing. I don’t think they’re the right way forward," LBC Radio quoted Johnson as saying when asked if he would rule out a windfall tax.

"The disadvantage with those sorts of taxes is that they deter investment ... they need to be investing in new technology, in new energy supply."

BP chief Executive Bernard Looney told the Times last week that the company would go ahead with investment in Britain even if a windfall tax were to be imposed.

Asked about that, Johnson said: "Well, you know, then we'll have to look (at) it.

More For You

Bangladesh seeks US deal to shield garment industry from tariffs

Workers are engaged at their sewing stations in a garment factory in Savar, on the outskirts of Dhaka, on April 9, 2025. (Photo by MUNIR UZ ZAMAN/AFP via Getty Images)

Bangladesh seeks US deal to shield garment industry from tariffs

BANGLADESH, the world's second-biggest garment manufacturer, aims to strike a trade deal with the US before Donald Trump's punishing tariffs kick in next week, said the country's top commerce official.

Dhaka is proposing to buy Boeing planes and boost imports of US wheat, cotton and oil in a bid to reduce the trade deficit, which Trump used as the reason for imposing painful levies in his "Liberation Day" announcement.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Bond yields ease following Starmer’s support for Reeves

THE COST of UK government borrowing fell on Thursday, partially reversing the rise seen after Chancellor Rachel Reeves became emotional during Prime Minister’s Questions.

The yield on 10-year government bonds dropped to 4.55 per cent, down from 4.61 per cent the previous day. The pound also recovered slightly to $1.3668 (around £1.00), though it did not regain all its earlier losses.

Keep ReadingShow less
modi-trump-getty
Modi shakes hands with Trump before a meeting at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)
Getty Images

Indian exporters watch closely as Trump says trade deal with India likely

THE US could reach a trade deal with India that would help American companies compete more easily in the Indian market and reduce tariff rates, President Donald Trump said on Tuesday. However, he cast doubt on a similar deal with Japan.

Speaking to reporters on Air Force One, Trump said he believed India was ready to lower trade barriers, potentially paving the way for an agreement that would avoid the 26 per cent tariff rate he had announced on April 2 and paused until July 9.

Keep ReadingShow less
Kolhapuri sandal sales surge in India post Prada controversy

Customers shop for 'Kolhapuri' sandals, an Indian ethnic footwear, at a store in New Delhi, India, June 27, 2025. REUTERS/Adnan Abidi

Kolhapuri sandal sales surge in India post Prada controversy

INDIAN footwear sellers and artisans are tapping into nationalist pride stoked by the Prada 'sandal scandal' in a bid to boost sales of ethnic slippers with history dating back to the 12th century, raising hopes of reviving a struggling craft.

Sales are surging over the past week for the 'Kolhapuri' sandals that have garnered global attention after Prada sparked a controversy by showcasing similar designs in Milan, without initially crediting the footwear's origins.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Economy grew 0.7 per cent in Q1 2025, fastest in a year

THE UK economy expanded at its fastest pace in a year during the first quarter of 2025, driven by a rise in home purchases ahead of a tax deadline and higher manufacturing output before the introduction of new US import tariffs.

Gross domestic product rose by 0.7 per cent in the January-to-March period, the Office for National Statistics (ONS) said, confirming its earlier estimate. This was the strongest quarterly growth since the first quarter of 2024.

Keep ReadingShow less