How much is the government making from energy costs?

[gareth h]

With the announced rise in profit from energy suppliers, and increased household energy and fuel costs how much better off is the government?
Even without windfall tax, corporation tax is still due on increased profit, VAT on household energy which has more than doubled, and VAT on petrol.
I’m surprised that the new prime minister hustings haven’t addressed this area.

[Crafty_]

Not enough to be paying back what Sunak splurged since 2020...

[J4CKO]

gareth h said:

With the announced rise in profit from energy suppliers, and increased household energy and fuel costs how much better off is the government?
Even without windfall tax, corporation tax is still due on increased profit, VAT on household energy which has more than doubled, and VAT on petrol.
I’m surprised that the new prime minister hustings haven’t addressed this area.

Its the government, they dont keep it, it gets spent, not always well but despite impressions and the general sentiment tax isnt the government being mean, we want services, we have to pay for it.

They arent sat on massive piles of our cash, its just goes like urinating into the wind.

[Chris Type R]

A large chunk of the gain is no doubt being swallowed up by interest repayments on borrowing.

[Condi]

Chris Type R said:

A large chunk of the gain is no doubt being swallowed up by interest repayments on borrowing.

£19bn in June and forecast to be £87bn across the year 2023. That is interest payments, not paying down any actual borrowing. By comparison the NHS costs £136bn, and so we are spending about 65% of the annual NHS budget on borrowing interest. Or, to put it another way, more than the entire defense, police, fire brigade, prison and court service budgets combined.

[98elise]

J4CKO said:

gareth h said:

With the announced rise in profit from energy suppliers, and increased household energy and fuel costs how much better off is the government?
Even without windfall tax, corporation tax is still due on increased profit, VAT on household energy which has more than doubled, and VAT on petrol.
I’m surprised that the new prime minister hustings haven’t addressed this area.

Its the government, they dont keep it, it gets spent, not always well but despite impressions and the general sentiment tax isnt the government being mean, we want services, we have to pay for it.

They arent sat on massive piles of our cash, its just goes like urinating into the wind.

This. The government has no pile of money. It only has tax income but it's not enough pay for the stuff everyone wants. Every year it borrows more money to pay for stuff it can't afford.

In addition it has to pay interest on all the money borrowed previously and had no means to pay back.