Government ‘has no plans’ to extend windfall tax to generators before Borexit

The government will reportedly not make major fiscal decisions before the successor of Boris Johnson is chosen

The government has no plans to extend the windfall tax on electricity generators before Boris Johnson leaves the office of Prime Minister.

The Prime Minister’s spokesman told reporters that the decision not to extend the tax is in line with government policy not to make major fiscal decisions until the next person finds their home at 10 Downing Street.

The government had previously publicly advocated for extending the windfall tax to electricity generators as there are allegedly “extraordinary profits” made in the sector.

In recent weeks, the possibility of imposing a tax on power generators sparked fierce criticism.

The Chairman of Centrica Scott Wheway said that would cause long-term problems in the sector, while trade association Energy UK warned it could delay and increase the cost of energy companies’ investments, at a time in which the UK needs to improve the security of supply and expand low carbon infrastructure.

Spokesman Max Blain said: “There’s no plans to do that in lines with convention, so we will continue to evaluate the scale of the profits and take appropriate steps – but we have no plans to introduce or extend that to that group.”

ELN has approached the Treasury for a response.

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