The UK will impose a 25% tax on energy profits on oil and gas companies

British Chancellor of the Exchequer John Sunak announced in the House of Commons on May 26 that the UK will impose a 25% tax on energy profits made by oil and gas companies.

Mr. Sunak said the tax was temporary and would be phased out when oil and gas prices returned to more normal levels historically. Mr Sunak also announced a £15bn cost-of-living support scheme to help people fight inflation.

In Britain, inflation hit a 30-year high of 7% in March; Inflation hit a 40-year high of 9% in April. Britain's central bank, the Bank of England, said earlier this month that it expected energy bills to rise further and inflation to reach above 10 percent by the end of the year.