Politics explained

Boris Johnson and Rishi Sunak may regret the government confusion over a windfall tax

Whether a windfall tax on the profits of the big energy companies is a good idea or not, the government seems determined to contrive things so that it loses politically whatever it does eventually decide to do.

Much the same, in fact, goes for the “emergency budget” (whether it is called that or not), which the opposition and many on the Tory back benches are demanding. But it is the windfall tax that is the immediate issue, the one where the pressure for a U-turn is becoming acute.

At the moment, the government is obviously conflicted on the issue, both between ministers and sometimes even within the minds of ministers themselves. Take the chancellor, for example. Rishi Sunak is mostly against a windfall tax, because it damages investment, and proud of his existing package of measures. His basic philosophy is that the government can’t protect everyone from global trends. He’d definitely prefer not to do anything further until the autumn when the future path of gas and electricity prices and the level of the energy cap is clearer – but he continually adds that he “stands ready” to help, which isn’t that specific.

Xural.com

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