Liz Truss’s camp hits back over Treasury windfall tax plans

Is the government about to toughen up its windfall tax? That’s the talk in Westminster today as Chancellor Nadhim Zahawi and Business Secretary Kwasi Kwarteng meet energy company executives to discuss measures to tackle the rising cost of living. The government is reported to be looking to strengthen the 25 per cent levy on the industry’s record-breaking profits announced in May. A Treasury source tells the Sun newspaper: ‘If you look back at what these firms were projected to make and what they actually brought in, it was beyond their wildest expectations. We are looking at options to go further and faster on those profits.’

It comes as Boris Johnson – along with the two Tory leadership contenders – comes under pressure to announce new measures now rather than wait for his successor to enter 10 Downing Street in September. Since the tax – which was first suggested by Labour – was announced to the dismay of many on the right who view it as wholly unconservative, oil and gas companies have announced larger profits than expected as energy bills are predicted to rise.