Government Considering Windfall Tax on Energy Companies
04/08/2008
Public anger at Centrica's announcement that it had made £992m in profit in the first half of this year has prompted the Government to consider imposing a windfall tax on energy companies.
Centrica, which owns British Gas, made its profit declaration only a day after it announced a 35% price increase for customers. The other big energy firms, Shell and BP, have also announced large profits.
Business Secretary John Hutton has confirmed the Government is looking at ways to help poorer families pay their energy bills this winter, and that includes a possible windfall tax on the "big three" energy companies.
Mr Hutton told BBC Radio 4's Today programme that tax policy was the responsibility of Chancellor Alistair Darling, who would need to "weigh up some very important considerations".
BBC political correspondent Iain Watson said a windfall tax was not expected "imminently" but it was "something being actively considered".
If a windfall tax went ahead it would be the second time the present Government has imposed such a measure. The last time was in 1997, when the Government collected a windfall tax from the profits of recently privatised utility companies.
Centrica, which owns British Gas, made its profit declaration only a day after it announced a 35% price increase for customers. The other big energy firms, Shell and BP, have also announced large profits.
Business Secretary John Hutton has confirmed the Government is looking at ways to help poorer families pay their energy bills this winter, and that includes a possible windfall tax on the "big three" energy companies.
Mr Hutton told BBC Radio 4's Today programme that tax policy was the responsibility of Chancellor Alistair Darling, who would need to "weigh up some very important considerations".
BBC political correspondent Iain Watson said a windfall tax was not expected "imminently" but it was "something being actively considered".
If a windfall tax went ahead it would be the second time the present Government has imposed such a measure. The last time was in 1997, when the Government collected a windfall tax from the profits of recently privatised utility companies.
