Fuel And The Impending Crisis

[Paigntonian]

Would be interested to know if the 'windfall' tax imposed on energy companies equates to the amount already expended by the UK government to help taxpayers, whether there is a shortfall or whether the government has received more from the 'extra' tax than has been expended on helping families and individuals so far. Can't find an answer and, before some get on their high horses, it's not a Party political point.

[Gromit]

The windfall tax is 25% of energy companies profits and is expected to raise £5Billion.
The £400 help for everyone towards their fuel bills is expected to cost £15Billion, which the Government will borrow to fund it.

[johnk]

They need to pay the vast army of admin staff to do this job so it can't all go to those that need it.

[bobbinwales]

On the negative side.
Alot of suppliers have gone bust so will pay no Corporation tax or windfall tax.
Big company's can avoid much of the planned tax by investing our allocating profit to non UK centres.
If companies do pay the windfall tax there's a good chance the cost'll be passed on to US via energy bills
Where taxes are paid the share price and dividends will fall hitting our pension pots.
Let's hope the raw energy price stabilises soon and falls massively in 2023/2024 as that's the only real escape

[Gromit]

Governments love to interfere in free markets.
Instead of giving everyone £400, they should give it to the energy suppliers and tell them not to increase their prices.
That would be far more efficient use of £15Billion, would avoid unpopular taxing and result in everyone benefitting. But handing £400 to everyone is a vote winner, and giving energy companies £15Billion is a vote loser.

[Zacs-Master]

The Govt should give £15billion to energy companies who are all reporting huge profits?

Can you see any issue with that, politically or financially?

[mushroom25]

here's a report from the Daily Express in 2019 -
https://www.express.co.uk/news/politics/1066042/jeremy-corbyn-fuel-bills-energy-renewable-electricity-gas-solar-power-conservative-labour

wow! it's lucky we swerved that one, eh?