Jeremy Hunt has announced a further windfall tax on booming energy firms to ease the pressure on households and businesses this winter.

As he delivered his long-awaited Autumn Statement, the Chancellor confirmed he will increase the energy profits levy from 25% to 35% until 2028.

He told MPs: ‘I have no objection to windfall taxes if they are genuinely about windfall profits caused by unexpected increases in energy prices.

‘But any such tax should be temporary, not deter investment and recognise the cyclical nature of many energy businesses.

On a windfall tax on electricity generators, he said: ‘The structure of our energy market also creates windfall profits for low-carbon electricity generation so, from January 1st, we have also decided to introduce a new, temporary 45% levy on electricity generators. Together these taxes raise £14bn next year.’

Companies like Shell and BP have made enormous gains selling gas and oil while families across the nation struggle with the cost of living.

Shell reported profits of £8billion for the last quarter, taking its total to £25billion for the year.

Campaigners and Labour have repeatedly said the huge profits were an opportunity for another windfall tax.

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Barring a major collapse in oil and gas prices, it is set to be the energy’s sector most profitable year to date.

The business has massively benefited from a post-pandemic economy desperate for energy to fuel growth.

Russia’s war in Ukraine has also pushed gas prices to all-time highs in Europe, while the price of oil has soared internationally.

Rishi Sunak launched a 25% windfall tax on oil and gas companies operating in the North Sea, back when he was chancellor in May.

But this did not stop firms handing billions to shareholders, leading to critics like Greenpeace demanding a ‘proper tax’.

The government was also forced to intervene in September to freeze the price cap as average families faced paying £5,000 for their energy bills in January 2023.

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