Chancellor Weighs Windfall Tax For Gas And Oil Giants

Rishi Sunak has asked Treasury officials to explore proposals for a windfall tax on gas and oil giants despite ministers repeatedly ruling out the idea, according to reports.

- Tom Ambrose

The chancellor is understood to be concerned over the lack of increased spending by the major companies despite them earning huge profits in recent months.

Despite the continued rejection of the notion of a windfall tax by Boris Johnson and senior ministers, the Daily Mail has reported that Mr Sunak is now considering the plan.

The newspaper claimed ministers were left "stunned” when BP chief Bernard Looney recently said his firm's investment plans would not be affected by such a tax.

He also referred to BP as a "cash machine” despite the growing cost of living crisis hitting households hard in the pocket up and down the country.

Supporters of a windfall tax on companies such as BP argue that it would help families deal with rising costs without an increase in public borrowing.