Business Secretary Grant Shapps has hinted that the government may extend the windfall tax on oil and gas companies in this month’s autumn budget as it tries to stabilise the UK’s public finances.
Speaking to Sky News with just 10 days to go before the government’s fiscal plans are unveiled, Mr Shapps said: “I mean, it is the case that because fuel prices have been so high, there have been unexpected profits, of course.
“But I think it’s important that we do carry on investing in making sure not on fossil fuels, but on the renewable energy as well, that we’ve we’ve got the capacity, we’ve got the ability to get that market moving as well.”
He added that the general public will “have to wait until the 17th” to know exactly which measures the government is going to pursue to tackle what the Resolution Foundation thinktank has said is a £40bn financial black hole.
Last week, an initial report in The Times suggested that Prime Minister Rishi Sunak and Chancellor Jeremy Hunt were planning to extend windfall taxes on oil and gas companies to raise an estimated £40bn over five years.
Mr Sunak and Mr Hunt want to maximise revenues from the windfall tax by increasing the rate from 25% to 30%, extending the policy until 2028, and expanding it to cover electricity generators – according to the paper.
COP26 president Alok Sharma, who was demoted from the cabinet by Mr Sunak, has 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 renewables.”
Advertisement
The Resolution Foundation said in a report last week that tax raises are “likely” to come soon as the government faces an “unpalatable menu” to find ways to re-balance the nation’s finances after former chancellor Kwasi Kwarteng’s ill-fated economic plans.
A combination of tax rises and spending cuts is likely to find the £40bn needed, it said.
Mr Sunak and Mr Hunt are currently figuring out how to tackle the abysmal economic forecast ahead of the autumn statement on 17 November, which was pushed back soon after Mr Sunak reappointed Mr Hunt.
Please use Chrome browser for a more accessible video player
2:01
Why do Shell’s profits matter?
The Resolution Foundation’s report added that a recession next year could be predicted by the government’s independent forecaster, the Office for Budget Responsibility.
It was the single biggest increase in more than three decades.
While GDP forecasts could be cut by up to 4% by the end of 2024.
Please use Chrome browser for a more accessible video player
2:29
BoE interest rate hike explained
The autumn statement this month will likely encompass “rough” tax rises, Sky News has been told by a source in the Treasury.
The tax rises are likely to be across the board, although Mr Sunak and Mr Hunt are said to have agreed those with the “broadest shoulders” should bear the greatest burden, it is understood.
Few concrete details have emerged but, according to The Times, public sector workers could face deep real-terms cuts to wages, with the Treasury reportedly looking at an increase of 2% across the board for 2023-24, at a time when inflation is expected to be well above that threshold.
The Resolution Foundation has said £9bn could be saved by the government choosing not to raise 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.
Another option would be to re-instate the health and social care levy to raise £15bn by 2026-2027, while around £2bn could be raised by extending the “stealth” freezes in income tax threshold by a further year to 2026-2027.
A new public inquiry will “uncover the truth” behind the so-called “Battle of Orgreave”, a bloody fight between striking miners and police officers in the 1980s.
One hundred and twenty people were injured in the violent confrontation on 18 June 1984, outside a coal processing factory in Orgreave, South Yorkshire.
Five thousand miners clashed with an equal number of armed and mounted police during a day of fighting.
Police used horse charges, riot shields and batons against the picketers, even as some were retreating.
Image: Masses of miners and police clashed during the day of fighting
Image: Police officers on horses charged against protesters
In the aftermath, miners were blamed for the violence in what campaigners believe was an institutional “frame-up”.
“There were so many lies,” says Chris Peace, from campaign group Orgreave Truth and Justice, “and it’s a real historic moment to get to this stage.”
“There’s a lot of information already in the public domain,” she adds, “but there’s still some papers that are embargoed, which will hopefully now be brought to light.”
More on South Yorkshire
Related Topics:
Image: Campaigner Chris Peace
Although dozens of miners were arrested, trials against them all collapsed due to allegations of unreliable police evidence.
Campaigners say some involved have been left with “physical and psychological damage”, but until now, previous governments have refused calls for a public inquiry.
Launching the inquiry today, Home Secretary Yvette Cooper told Sky Newsi that she wanted to “make sure” campaigners now got “proper answers”.
“We’ve obviously had unanswered questions about what happened at Orgreave for over 40 years,” Ms Cooper says, “and when we were elected to government, we determined to take this forward.”
Image: A police officer tackling a miner
Image: A bleeding protester being led away by police during the ‘Battle of Orgreave’
Image: The Bishop of Sheffield, Pete Wilcox, will chair the inquiry
The inquiry will be a statutory one, meaning that witnesses will be compelled to come and give evidence, and chaired by the Bishop of Sheffield, Pete Wilcox.
“I’m really happy,” says Carl Parkinson, a former miner who was at Orgreave on the day of the clash, “but why has it took so long?”
“A lot of those colleagues and close friends have passed away, and they’ll never get to see any outcome.”
Image: Former miner Carl Parkinson
Image: Former miner Chris Skidmore
Mr Parkinson and Chris Skidmore, who was also there that day, were among the group of campaigners informed first-hand by Ms Cooper about the public inquiry at the Orgreave site.
“It wasn’t frightening to start off with,” Mr Skidmore remembers of the day itself, “but then what I noticed was the amount of police officers who had no identification numbers on. It all felt planned.”
“And it wasn’t just one truncheon,” says Mr Parkinson, “there were about 30, or 40. And it was simultaneous, like it was orchestrated – just boom, boom, boom, boom.
“And there’s lads with a split down their heads for no good reason, they’d done nothing wrong. We were just there to peacefully picket.”
Image: Police used riot shields against the picketers, even as some were retreating
Image: In the aftermath of the fighting, miners were blamed for the violence
In the intervening years, South Yorkshire Police have paid more than £400,000 in compensation to affected miners and their families.
But no official inquiry has ever looked at the documents surrounding the day’s events, the lead-up to it and the aftermath.
“We need to have trust and confidence restored in the police,” says South Yorkshire Mayor Oliver Coppard, “and part of that is about people, like this campaign, getting the justice that they deserve.
“Obviously, we’ve had things like Hillsborough, CSE [Child Sexual Exploitation] in Rotherham, and we want to turn the page.”
Consumers will get stronger protections with a new water watchdog – as trust in water companies takes a record dive.
Environment Secretary Steve Reed will announce on Monday that the government will set up the new water ombudsman with legal powers to resolve disputes, rather than the current voluntary system.
The watchdog will mean an expansion of the Consumer Council for Water’s (CCW) role and will bring the water sector into line with other utilities that have legally binding consumer watchdogs.
Consumers will then have a single point of contact for complaints.
The Department for the Environment, Food and Rural Affairs (Defra) said the new watchdog would help “re-establish partnership” between water companies and consumers.
A survey by the CCW in May found trust in water companies had reached a new low, with fewer than two-thirds of people saying they provided value for money.
Just 35% said they thought charges from water companies were fair – even before the impact could be felt from a 26% increase in bills in April.
Please use Chrome browser for a more accessible video player
1:20
‘We’ll be able to eliminate sewage spillages’
Mr Reed is planning a “root and branch reform” of the water industry – which he branded “absolutely broken” – that he will reveal alongside a major review of the sector on Monday.
The review is expected to recommend the scrapping of water regulator Ofwat and the creation of a new one, to incorporate the work of the CCW.
Image: A water pollution protest by Surfers Against Sewage in Brighton
Campaigners and MPs have accused Ofwat of failing to hold water operators to account, while the companies complain a focus on keeping bills down has prevented appropriate infrastructure investment.
He pledged to halve sewage pollution by water companies by 2030 and said Labour would eliminate unauthorised sewage spillages in a decade.
Mr Reed announced £104 billion of private investment to help the government do that.
Victoria Atkins MP, Shadow Secretary of State for Environment, Food and Rural Affairs, said: “While stronger consumer protections are welcome in principle, they are only one part of the serious long-term reforms the water sector needs.
“We all want the water system to improve, and honesty about the scale of the challenge is essential. Steve Reed must explain that bill payers are paying for the £104 billion investment plan. Ministers must also explain how replacing one quango with another is going to clean up our rivers and lakes.
“Public confidence in the water system will only be rebuilt through transparency, resilience, and delivery.”
England star Jess Carter says she has been the victim of racist abuse online during the UEFA Women’s Euros in Switzerland.
The Lionesses defender, who has 49 England caps, said she will be “taking a step back from social media and leaving it to a team to deal with”.
In an Instagram post, the 27-year-old player said: “From the start of the tournament, I have experienced a lot of racial abuse. Whilst I feel every fan is entitled to their opinion on performance and result, I don’t agree or think it’s ok to target someone’s appearance or race.”
Image: Jess Carter. Pic: PA
Carter said she was stepping back from social media to “protect myself in a bid to keep my focus on helping the team anyway I can”.
She added: “Hopefully speaking out will make the people writing this abuse think twice so that others won’t have to deal with it.”
Carter also said that England have made some “historic changes with the Lionesses squad” that she was “so proud” of, and she hopes that by speaking out about racial abuse “it will make another positive change for all”.
‘Abhorrent abuse’
More on Football
Related Topics:
The Football Association leadership has condemned the “abhorrent abuse” against Carter and has contacted UK police about it.
FA chief executive Mark Bullingham said in a statement: “Our priority is Jess and giving her all the support she needs. We strongly condemn those responsible for this disgusting racism.
“As soon as we were made aware of the racist abuse Jess received, we immediately contacted UK police. They are in touch with the relevant social media platform, and we are working with police to ensure those responsible for this hate crime are brought to justice.”
Image: Carter during a training session in Switzerland. Pic: PA
The Lionesses said in a statement: “We stand with Jess and all Lionesses players past and present who have suffered racism.
“No one should have to endure such vile abuse, be that in football or any walk of life.”
They added: “Those behind this online poison must be held accountable.”
Anger and sadness
England teammate Lucy Bronze said there was “anger” and “sadness” among the squad following the abuse.
Bronze said: “I think we all know that any player of colour that’s played for England has probably gone through racist abuse. That’s a sad fact.”
She told Sky News’ sports correspondent Rob Harris that social media platforms need to be held more accountable.
Bronze added: “People need to be held accountable for their actions, whether it’s in-person or online. The abuse is not okay. Racism is not okay.”
The prime minister said on X that there was “no place for racism in football or anywhere in society”.
Sir Keir Starmer added: “I stand with Jess, the Lionesses, and any players who have suffered racism, on and off the pitch.”
Carter has started all four of England’s games at the tournament.
The defending champions face Italy on Tuesday night in Geneva in the Euros semi-finals. If they win and reach the final, they will play either Germany or Spain, who face each other on Wednesday.
Follow the World
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
The Lionesses also said that until now, they have chosen to take the knee before matches.
“It is clear we and football need to find another way to tackle racism,” they said.
England won’t be taking the knee before semi-final
The Lionesses said they have agreed as a squad to remain standing before kick-off in the match against Italy.
“We hope the game can come together to see what more can be done.”
Kneeling, a symbolic anti-racism gesture, came to prominence in 2016 when NFL player Colin Kaepernick knelt in protest during the United States national anthem and became more widespread during the Black Lives Matter movement.