Britain: 15 billion in households and tax on energy giants

The ever-increasing cost of living has led many Britons to a dead end as pressure on the Johnson government for drastic solutions continues to grow.

For months now, Boris Johnson and his government have been calling for the Partygate affair to be forgotten and for the British people to be moved on to the realities of life.

But even the “bottom” of this government is not a road with rose petals… The ever-increasing cost of living and energy bills that have soared, have led many Britons to the question “heat or food?” with many criticizing the government for doing too little to solve the problem.

But now, after many appeals, Finance Minister Risi Sunak has announced a “great deal” of 15 15 billion in household aid.

What does the relief package include?

Inside the British Parliament, Richie Sunak announced that every household in the UK will be given 400 400 through discounts on energy bills from October. And the truth is that he did not have much room not to do so. Just two days ago, the energy regulator Ofgem announced that energy bills from October (which is the next revision of the ceiling) could reach 8 2,800 a year, further deepening the cost-of-living crisis. It is recalled that the energy price ceiling has made a huge rally in just a few months, from 1,277 pounds per year, to jump in April to 1,971 pounds per year.

In addition, the package provides 6 650 assistance to 8 million low-income households, 300 300 to 8 million retired households and an 150 150 emergency allowance for people with disabilities.

The tax on energy giants and the reactions

However, the financing of the relief package will obviously lead to the need for the country to borrow. So the 10 billion, out of a total of 15, will be raised from the bond markets, but there are still 5 billion that will be covered by a decision that was considered a huge “U-turn” of the Johnson government: an extraordinary tax on the energy giants.

A few weeks have passed since oil and gas companies such as BP and Shell announced huge profits of more than $ 6 billion and $ 9 billion respectively.

Then and until yesterday, the Johnson administration argued that imposing a tax on these companies would drive away investment. But now, under pressure, Risi Sunak has made a fuss and decided to impose a tax on energy giants of 25% on their profits in order to raise 5 5 billion.

Shadow Finance Minister Rachel Reeves said in a statement that “Mr. Sunak has finally come to his senses with a proposal tabled some time ago by the Labor Party.” However, the right wing of the ruling party hastened to criticize the special tax as a “socialist move” that is not appropriate for the Conservative party, while BP today also spoke of a “raid” on its profitability.

Zoe Katzagiannaki, London

Source: Deutsche Welle