Response to energy profits levy announcement

 Rain Newton-Smith, CBI Chief Economist, said:

“Helping people facing real hardship amid one of the worst cost-of-living crunches in recent memory is the right thing to do.

“Despite the investment incentive, the open-ended nature of the energy profits levy - and the potential to bring electricity generation into scope - will be damaging to investment needed for energy security and net zero ambitions.

“It sends the wrong signal to the whole sector at the wrong time against a backdrop of rising business taxation elsewhere.

“The Government must work with business on a genuine plan for increasing business investment and get growth going again, particularly in areas like energy efficiency.”