Speaking to Sky News with just 10 days to go before the government’s budget plans are unveiled, Mr Shapps said: “I mean because fuel prices have been so high, there have been windfalls, of course. “But I think it’s important that we continue to invest to make sure that not in fossil fuels, but also in renewables, that we have the capacity, we have the ability to mobilize that market. also.” Sunak to increase migrant crossing points with Macron – Politics Latest He added that the general public “will have to wait until the 17th” to find out exactly what measures the government is going to take to tackle what the Resolution Foundation thinktank said is a £40bn financial black hole. Last week, an initial report in The Times said Prime Minister Rishi Sunak and Chancellor Jeremy Hunt planned to extend windfall taxes on oil and gas companies to raise around £40 billion over five years. Messrs Sunak and Hunt want to maximize revenue from the windfall tax by raising the rate from 25% to 30%, extending the policy until 2028 and extending it to cover electricity generators – according to the newspaper. With BP revealing profits doubled to more than £7.1bn in the quarter to September, pressure continues to mount for an enhanced windfall tax on the oil and gas giants to help fill the Department’s coffers Finance. COP26 chairman Alok Sharma, who was demoted from the cabinet by Mr Sunak, backed the move, saying: “We need to raise more money from a windfall tax on oil and gas companies and actively encourage them to invest in renewable energy sources”. The Resolution Foundation said in a report last week that tax hikes are “likely” to come soon as the government faces an “unpleasant menu” to find ways to balance the country’s finances following the ill-fated economic plans of former chancellor Kwasi Kwarteng . A combination of tax increases and spending cuts is likely to find the £40bn needed, he said. Mr Sunak and Mr Hunt are currently considering how to deal with abysmal economic forecasts ahead of the autumn statement on November 17, which was postponed shortly after Mr Sunak reappointed Mr Hunt. Use Chrome browser for more accessible video player 2:01 Why do Shell’s earnings matter? The Resolution Foundation report added that a recession next year could be predicted by the government’s independent forecaster, the Office for Budget Responsibility. Last week, the Bank of England raised its official interest rate by 0.75 percentage points to 3% and said the UK was already in recession. It was the largest increase in more than three decades. While GDP forecasts could fall by as much as 4% by the end of 2024. Use Chrome browser for more accessible video player 2:29 BoE rate hike explained This month’s autumn statement is likely to include “tentative” tax increases, a Treasury source told Sky News. The tax rises are likely to be across the board, although Messrs Sunak and Hunt are said to have agreed that those with the “broadest shoulders” should bear the brunt, it is understood. Read more: Demand for mortgages falls as customers struggle with high interest rates Few concrete details have emerged but, according to the Times, public sector workers could face severe real-terms pay cuts, with the Treasury reportedly considering an across-the-board rise of 2% for 2023-24, at a time when inflation is expected to be well above this limit. The Resolution Foundation said £9bn could be saved if the government chose not to increase benefits and pensions in line with rising prices next year, but any such move would have a “huge” impact on those already struggling to make ends meet. make it through Another option would be to bring back the health and social care levy to raise £15bn by 2026-27, while around £2bn could be raised by extending the ‘thief’ freezes on the income tax threshold by one more year to 2026-2027.
