Overwhelming case for windfall tax on energy companies, says Tesco Chairman

The boss of the retail giant has said customers are “extremely stretched” because of price rises

As the cost of living crisis engulfing the UK bites due to the increase in energy prices, the potential implementation of a windfall tax has been backed by one of the biggest brands.

Tesco Chairman John Allen told BBC Radio 4’s Today programme that customers are “extremely stretched”.

Asked about what he would like to see included in the Queen’s Speech, Mr Allen said: “I think several short-term things – first of all, action to help people cope with a very sharp increase in energy prices.

“It is harder for people to mitigate energy than it is with food and I think there is an overwhelming case for a windfall tax on profits from those energy producers fed back to those most in need of help with energy prices.

“I think that would be the single biggest thing that could be done. It should be short-term only.”

The government had previously dismissed the idea of a windfall tax on energy firms’ soaring profits. 

Earlier this month, Shell and bp unveiled record profits as part of their latest quarterly reports.

Mr Allen added: “The fact is that the cost of living crisis, people talk about percentage but actually, it is absolute increases for many people and the people on lowest incomes the hardest pressed, it’s much more serious and more difficult to cope with.

“A lot of people are feeling something of a pinch and lots of people are actually feeling extremely stretched.”

The inflation could rise to around 10% later this year, according to the latest estimates from the Bank of England.

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