UK Chancellor Rishi Sunak on Thursday tabled a series of measures in parliament, including one-off payments for ailing families and a temporary levy on high profits from oil and gas companies, as part of a £15 billion cost-of-living aid package to help cut the cost of living. address Britain’s problems. rising inflation and a crisis in the cost of living.
India’s finance minister, who is under mounting pressure to come up with a plan to tackle the UK’s highest inflation in decades, said he knows people are worried about bills.
In his statement to the House of Commons, Sunak said the government “will not sit still” and has the tools to fight inflation over time.
“We know that people face challenges with the cost of living and so I am stepping in today with further support to help with rising energy bills,” said Sunak.
“We have a collective responsibility to help those who pay the highest price for the high inflation we face. That is why I am directing this significant support to millions of the most vulnerable people in our society. I said we would support people and that is what this support is doing today,” he said.
A new one-off payment of GBP 650 will be offered to more than 8 million low-income households on Universal Credit, Tax Credits, Pension Credit and other benefits, with separate one-off payments of GBP 300 to retired households and GBP 150 to individuals who receive disability benefits. The minister had already confirmed that there will be a discount on the energy bill from October.
On Thursday, he announced a doubling of that discount from GBP 200 to GBP 400, removing the obligation to repay it over time. This basically means that low-income households will receive GBP 400 off their energy bills from October to cushion the impact of a particularly sharp rise in global fuel prices.
The Treasury says the new cost-of-living support package will ensure that nearly all 8 million most vulnerable households will receive at least £1,200 in additional support this year.
To help pay for the additional aid, the finance minister said a new temporary energy profit tax of 25 percent would be introduced for oil and gas companies, reflecting their extraordinary profits. But to increase the investment incentive, the new tax includes a new investment deduction of 80 percent.
Sunak pointed out that the oil and gas sector is making “extraordinary profits” and so such a tax will be levied on profits at a rate of 25 percent and eventually phased out.
“It is also right that those companies that are making extraordinary profits thanks to record global oil and gas prices contribute to this. That is why I am introducing a temporary energy profit tax to help pay for this unprecedented support in a way that promotes investment,” said Sunak.
The opposition Labor party is calling for such an intervention on the high profits of the energy giants in the form of a “windfall tax”. While Labor claimed the government was effectively maintaining its idea in a different form, Sunak insisted the new tax marked a “sensible middle ground” on the issue.
The opposition has also attacked the government because the announcement was timed to take headlines away from the partygate scandal, after a damning investigative report concluded there was a leadership failure at the top of the government with parties breaking the lockdown. at Downing Street. PTI AK ZH ZH ZH