Rachel Reeves should scrap the North Sea windfall tax now

The chancellor’s failure to reform or remove the energy profits levy (EPL) – AKA the North Sea windfall tax – in her spring forecast was a case of “political expediency and more to do with putting one byelection result before the economic needs of the country”. Who said that? Some Tory or Reform politician being opportunist as war in Iran puts the UK’s energy import dependency in the spotlight?Actually, no, it was the general secretary of the GMB union, Gary Smith, on Wednesday, demonstrating once again that views on the North Sea oil and gas do not fit neatly into a left-right divide. He has been making the principled case for an orderly transition in energy for ages, warning that decarbonising via deindustrialising costs jobs and will end up pushing voters rightwards.As it happens, one suspects Rachel Reeves’ silence on the EPL in her statement – despite heavy Westminster rumours that something was in the offing – was probably also motivated by war in Iran and spikes in the prices of oil and gas. It is harder, politically speaking, to reform a windfall tax if there is a chance that windfall conditions are returning

How will war in the Middle East affect your finances?

The war in the Middle East is thousands of miles away, but gyrations in financial markets and surging energy prices threaten a new cost of living crisis in the UK.Here is how it could affect your finances.Mortgage holders benefited from cheaper home loans in recent months after the Bank of England cut interest rates four times in 2025 to bring the base rate down to 3.75%. But that could be about to change

South West Water admits criminal offence over Devon parasite outbreak

A major utility company has admitted supplying water unfit for human consumption after a parasite outbreak in Devon made almost 150 people sick.South West Water (SWW) pleaded guilty to the criminal offence relating to the cryptosporidiosis outbreak in Brixham, Devon, which affected 2,500 homes.Almost 150 cases of illness were confirmed in spring 2024, with some people needing hospital treatment, and many residents say the impacts of the outbreak are still being felt.During an hour-long hearing at Exeter magistrates court, the company pleaded guilty to an offence under the Water Industry Act 1991. It will be sentenced in June and faces a fine of hundreds of thousands of pounds

UK motor fuel prices rise since Middle East conflict began, and energy bills could jump 10% in July – as it happened

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.The dust is settling after Rachel Reeves’s spring forecast statement yesterday, which showed that growth will be weaker than hoped this year while unemployment will be higher.While the chancellor claimed the UK could ‘beat the forecasts again’, economists are concerned that the ongoing Middle East crisis will hurt the economy, and household finances, badly.The Resolution Foundation have just released their overnight analysis of the Office for Budget Responsibility’s forecast.The good news? The UK is set for a “decent”, one-off increase in living standards this year, and a bumper rise for lower-income families

War in Middle East ‘could wipe out growth in UK living standards’

The Middle East crisis could trigger an energy price shock that more than wipes out the £300 rise in living standards a typical working-age household could otherwise expect this year, a leading thinktank has warned.The Resolution Foundation said a “decent” one-off increase in average living standards in 2026 and a bumper rise for lower-income households could be reversed by rising oil and gas prices as the Iran conflict disrupts supplies.However, if the recent jump in energy prices persists, the foundation said all the gains could be wiped out.While the effect may not be as large as the increase caused by the Russian invasion of Ukraine, which sent the cost of food, oil and gas soaring, a rise this year in oil and gas prices could add a percentage point to UK inflation and £500 on typical annual energy bills, it said.The UK’s reliance on gas from the Middle East makes it especially vulnerable to an effective blockade of the strait of Hormuz, through which about 20% of the world’s liquid natural gas is transported

European stock markets rally after report of ‘secret outreach’ by Iran to try to end war

European stock markets have rallied on a report claiming Iran is engaging in a “secret outreach” to end the war in the Middle East, after several days of heavy losses on indices around the world.The New York Times reported that a day after the attacks began, operatives from Iran’s Ministry of Intelligence indirectly contacted the CIA with an offer to discuss terms for ending the conflict.Officials briefed on the backchanneling are, however, sceptical – at least in the short-term – that either the Trump administration or Iran is really ready for an off-ramp, the report said. There are also questions over whether any Iranian officials could negotiate a ceasefire agreement, as Israeli strikes have taken out many senior figures.The report helped push up the UK’s FTSE 100 share index by nearly 70 points, or 0