More than 40 civil society organisations and trade unions have written jointly to the Prime Minister and Chancellor calling for excess profits taxes on sectors set to benefit financially from the economic fallout of the conflict involving Iran.
The signatories, who include National Education Union, Tax Justice UK, Greenpeace UK and the End Fuel Poverty Coalition, are urging the Government to act against profiteering as energy bills, fuel costs and household essentials face further upward pressure. They propose that revenues raised should be directed towards direct cost of living support and long-term investment in economic resilience.
The letter follows new data showing North Sea energy firms are already positioned to make additional profits from rising gas prices, with banks, mortgage providers, defence contractors and agribusiness also expected to see significant revenue increases.
Faiza Shaheen, Executive Director of Tax Justice UK who coordinated the letter said:
“Too often UK governments have failed to protect households and small businesses from the profiteering corporates and super-rich individuals who circle around crises like vultures. The Chancellor needs to show that this will not be yet another crisis where the rich get richer, while everyone else foots the bill.”
A spokesperson for the End Fuel Poverty Coalition said:
“Gas prices have more than doubled since late February, and households are already struggling with energy bills that have been stuck at elevated levels for five years. The latest global disruption is a stark reminder of the cost of our dependence on imported fossil fuels. Every time conflict or instability strikes overseas, ordinary households pay the price through their energy bills.
“The Government must act urgently to protect households from the impact of rising prices and ensure that the billions in excess profits energy companies are making during this crisis are redirected to support the people who need it most. Wiping out household energy debt, strengthening the Warm Home Discount and accelerating investment in home insulation would all help cushion the blow.”
The organisations are specifically calling for a strengthening of the existing Energy Profits Levy on North Sea oil and gas companies, a new levy on UK bank profits, and additional excess profits taxes on defence, agribusiness and associated technology firms.
The letter cites previous crises, including the Covid-19 pandemic and the invasion of Ukraine, as periods when the wealthiest households and corporations accumulated greater fortunes and profits while millions struggled with the rising cost of living.
Since 2020, energy firms have already made more than £125bn in profits on their UK operations.