Former UK Prime Minister John Major yesterday told the Tories to show ‘a heart and social conscience’ as he proposed a windfall tax on energy firms. Piling pressure on David Cameron over soaring power bills, the former prime minister said it was ‘criminally easy’ to overlook the millions of ‘silent citizens’ struggling through no fault of their own. Full story >>
A windfall tax is a tax levied by governments against certain industries when economic conditions allow those industries to experience above-average profits. Windfall taxes are primarily levied on the companies in the targeted industry that have benefited the most from the economic windfall, most often commodity-based businesses (source: Investopedia). • Unpopular as ever, banks are an easy target: even Margaret Thatcher levied a windfall tax on them in 1981.