Truss slithers towards Windfall Tax

[Justin Passing]

According to this it seems the cos manage to avoid paying tax on their profits if they use the money for green work.
Hmm where are those billions spent exactly, then?

What is the windfall tax on oil and gas companies and how does it work?

New PM Liz Truss has ruled out using a further windfall tax to fund energy price measures.

www.bbc.co.uk

 

[ajohn]

If furlough cost 300bn or summat, why all the spookedness over 65bn? Someone explain please?

The IMF comment about the power cost cap is that it supports all even those that don't need it. Couple that with the borrowed money aspect. More debt than needed. They accept the need for the covid debt which was targetted where needed.

The other factor all will consider is how it's going to be repaid. Going on brief footage of an enquiry were various economists were interviewed it sounds like some of that aspect was intended to be down to growth of the economy. Jam tomorrow repayments when the growth can not be guaranteed. Then the short term effects much as Sunak mentioned in his compaigning. Add in the west is going into a period of low growth maybe even recession. I'd also suspect using debt to try and prop up GDP.. Costs for people and companies will increase anyway. The cap doesn't get rid of all of the price increases from more stable times anyway.

 

[JohnD]

The other factor all will consider is how it's going to be repaid.

When a government owes a billion pounds, it knows that a few years of 10% inflation will soon whittle it down to a trifling sum.