Oil Companies and Banks Face UK Windfall Tax Threat

Chancellor John Healey has been presented with a plan to tax oil firms and banks further as bosses in the sectors have posted huge profits, according to reports. Healey may look to tax businesses at this year's Budget in order to rebuild a partly-eroded 22.7bn fiscal buffer, and fill spending pledges for defence and the cost of living. It was reported in Bloomberg that Treasury officials believe windfall taxes on banks and oil companies could be "low hanging fruit" for increasing government receipts. The mooted plan could put City bosses on edge in the two-month run of lobbying and speculation ahead of this year's Budget. Citigroup boss Dame Jane Fraser warned Healey against a new banking tax while industry officials at UK Finance have written to the Chancellor to warn of the risks of hitting the financial services sector.