Operators of wind farms could reportedly have to pay a windfall tax as the cost of living crisis bites.

According to the Financial Times, the Chancellor has instructed Treasury officials to work on plans for a potential wider windfall tax on more than £10 billion of excess profits made by electricity generators.

The reported tax could hit oil and gas companies as well.

A few days ago, a consortium of 31 organisations operating in the oil and gas industry said the implementation of a windfall tax could put the UK’s green goals and investments at risk.

Last week, in an interview with the BBC, Rishi Sunak said he was not “naturally attracted” by the idea of windfall taxes.

An HM Treasury spokesperson told ELN: “We understand that people are struggling with rising prices, and while we can’t shield everyone from the global challenges we face, we’re supporting British families to navigate the months ahead with a £22 billion package of support.

“This includes 30 million people getting a £6 billion tax cut worth up to £330 a year from July, millions of households receiving up to £350 each to help with rising energy bills through our £9.1 billion support package and a cut in the Universal Credit taper rate helping over a million families keep around an extra £1,000 a year.”