The steady surge in oil prices in 2021 led to massive profits for the world’s oil companies. Major UK oil and gas producers also reported record-high income, but their windfall gains attracted controversy.
Following a public outcry, the Labour Party has called for a windfall tax on oil producers, which would raise cash to help residents struggling with soaring energy bills. The one-off tax would reduce energy costs for regular consumers. Furthermore, the Labour Party’s MP Rachel Reeves has advocated for raising corporate taxes by 10% over the year.
Earlier, UK finance minister Rishi Sunak announced a £150 ($204) council tax rebate for about 20 million people to alleviate the impact of soaring prices. However, most UK residents will still have to pay massive energy and heating bills. In Europe, electricity prices continue to climb. The recent upsurge was triggered by France’s earlier decision to cut down on nuclear power production. France is the biggest electricity producer in the region.
