UK Weighs New 40% Windfall Tax on Electricity Generators
- Sunak, Hunt to unveil package of tax rises, spending cuts
- UK considers raising energy price freeze to £3,100 from April
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UK Chancellor Jeremy Hunt is considering a new 40% windfall tax on the “excess returns” of electricity generators as part of his sprawling package of tax rises and spending cuts this week, according to a person familiar with the proposal.
The tax will replace a plan by Prime Minister Rishi Sunak’s predecessor, Liz Truss, to instead cap the revenue of renewable and nuclear power producers from next year, the person said. The levy will be in addition to a current windfall tax on the profits of oil and gas firms, which is set to be extended to 2028 and increased from 25% to 35% as part of Thursday’s economic statement.