Hunt to widen net on windfall taxes

JEREMY HUNT is said to be planning to extend the energy windfall tax to electricity generators as part of a major package of reforms to shore up public finances.

The Chancellor is preparing a 40pc tax on the “excess returns” of companies such as British Gas and Drax, the Financial Times reported.

The levy will be charged on profits above a certain price per megawatt hour, although that threshold is yet to be decided.

Previous discussions for a revenue cap, similar to the one being planned by the EU, have now been dropped.

In his Autumn Statement on Thursday, Mr Hunt will also raise the windfall tax on oil and gas giants from 25pc to 35pc and extend it for another two years until 2028, according to the report. The two tax changes are expected to raise around £45bn over six years.

News of the tax rises comes as Nick Read, the head of the Post Office, warned that without extra help from the Government, soaring energy bills could force swathes of local branches to close.

“If that support ends next March, the future looks very challenging for many postmasters and their shops serving local customers,” he said.