British oil and gas firms forced to share profits with government

Britain’s Treasury chief Rishi Sunak said the government would introduce a 25% temporary windfall tax on the profits of oil and gas firms.

The tax is expected to raise around 5 billion pounds ($6.3 billion) over the next year to help fund cash payments to help millions of people cope with sharply rising energy bills, Sunak said.

U.K. inflation hit 9% in April, the highest level in 40 years, and millions of customers saw their annual energy bills jump 54% the same month - amounting to an extra 700 pounds ($863) a year on average for each household.

Sunak said the government help will target the most vulnerable, including disabled people and retirees. Some 8 million of the country’s lowest-income households will receive a one-time government payment of 650 pounds ($818). Every household will also receive a 400 pound ($503) discount on domestic energy bills in October.