The Chancellor has said he will increase the Energy Profits Levy - the windfall tax on profits made by energy companies - from 25% to 35%. The announcement came as part of his autumn statement.
Jeremy Hunt told the Commons: "I have no objection to windfall taxes if they are genuinely about windfall profits caused by unexpected increases in energy prices. But any such tax should be temporary, not deter investment and recognise the cyclical nature of many energy businesses. Taking account of this, I have decided that from January 1 until March 2028 we will increase the Energy Profits Levy from 25% to 35%."
On a windfall tax on electricity generators, he said: "The structure of our energy market also creates windfall profits for low-carbon electricity generation so, from January 1, we have also decided to introduce a new, temporary 45% levy on electricity generators. Together these taxes raise £14bn next year."
