To cope with inflation, the UK is taxing the energy giants
In a Sainsbury's supermarket in London on January 12, 2021 (Illustrative image).
REUTERS - HENRY NICHOLLS
Text by: RFI Follow
2 mins
British Finance Minister Rishi Sunak unveiled this Thursday, May 26, a new aid package worth 15 billion pounds to deal with the impact of the cost of living on disadvantaged households, financed in part by an exceptional tax on the energy.
Advertisement
Read more
Thanks to the set of measures unveiled on Thursday, the most modest Britons “
will feel the weight (of inflation) easing
,” Finance Minister Rishi Sunaka told the British Parliament.
► To read also
: Inflation in the United Kingdom: Johnson wants fewer civil servants and more aid
According to a statement from the UK Treasury, "
almost one in eight of the UK's most vulnerable households will receive at least £1,200 this year, including a one-off £650 cost of living payment, increase in the minimum income (Universal Credit) of 400 pounds and a doubling of the reduction on energy bills
” for October, when the tariff ceiling will be considerably raised.
Transition to low-carbon energies
In total, with the measures estimated at 22 billion pounds already announced, the total aid for "
the cost of living for low-income households reaches 37 billion pounds this year
", notes the Treasury.
These measures will be financed in particular by a “temporary 25% tax
on energy profits for oil and gas companies, reflecting their extraordinary profits
” since the Russian invasion of the war in Ukraine, which aggravated the surge in hydrocarbon prices. , details the press release.
However, he specifies that to “
encourage investment, the new tax will include a generous investment allocation of 80%
” to stimulate the transition to low-carbon energies.
The Labor opposition joked in Parliament on Thursday about this apparent U-turn, after several months of persistent refusal by the Conservative government of Boris Johnson to introduce such a tax for fear of discouraging investment in the transition to carbon neutrality and the energy security, echoing the arguments of the giants of the sector.
UK inflation hit 9% in April, a 40-year high.
The British energy authority Ofgem warned on Tuesday that the energy price cap could increase by more than 40% in October, or 800 pounds - more than 930 euros - additional per year and per household.
(
With
AFP)
Newsletter
Receive all the international news directly in your mailbox
I subscribe
Follow all the international news by downloading the RFI application
google-play-badge_EN
UK
Energies