Boris Johnson has once again rejected calls for a windfall tax on energy firms' soaring profits despite Brits' rocketing bills.
Labour's Keir Starmer has been urging the government to introduce a one-off levy on oil and gas giants as rising energy bills boost profits.
Rumour is also rife that there is a rift between Boris Johnson and Rishi Sunak over the idea, after the Chancellor hinted in an interview the government could U-turn in the months ahead.
On Monday, No10 denied there was any Cabinet split but said “each company will have to justify its approach” after being challenged about BP's share buyback scheme.
What is a windfall tax?
Usually a one-off levy imposed on a company or group of businesses that have unexpectedly benefited from something outside their control, in this case a surge in oil and gas prices.
How could it work?
Labour ’s proposal is for a year-long increase in oil and gas producers’ corporation tax of 10 percentage points, which the party says would raise £1.2billion. The money raised would be used to help offset a leap in household energy bills.
Do others support a windfall tax?
The Libs Dems and the Green Party are among others that do.
What is the argument against?
The North Sea oil and gas industry already argues it is already heavily taxed. Producers pay 30% corporation tax on their profits and a supplementary 10% rate on top of that.
But they also enjoy capital allowances that enable them to offset investment against their tax bill.
Firms also claim a windfall tax would deter investment in cleaner, greener technology.
