CHANCELLOR HINTS AT POSSIBLE ENERGY WINDFALL TAX

The chancellor Rishi Sunak has hinted that energy companies could be subject to a windfall tax on their profits. He took part in a question and answer session with users of the website Mumsnet and said such a tax was "something I'd look at" (Telegraph). The chancellor called on energy companies to increase their investment in supporting UK energy supplies (Guardian) and also said now wasn’t the right time to provide more government support for rising energy bills, as we should wait to see what happens to energy prices in the autumn (BBC).

Separately, the Financial Times reports on which bills are expected to be included in the Queen’s Speech on 10 May, including legislation to support the transition to low-carbon technology.

MORTGAGE COSTS LIKELY TO RISE

The Telegraph looks at the potential impact of interest rate rises on mortgage costs and house prices. It reports that house prices are unlikely to keep rising in the way they have been, given that the Bank of England could increase Bank Rate to one per cent next week. In addition, financial markets are anticipating further rises to 2.5 per cent over the next year. The potential impact of increased mortgage costs on households is something that the chancellor raised in a cabinet meeting yesterday (The Times).

NEWS IN BRIEF

Consumer spending fell during the month of April, with the CBI’s monthly survey falling to a 13-month low (The Times).

The Financial Times today features an in-depth look at the UK’s plans for the cryptocurrency industry.

There were almost 100,000 fewer cars built in the first three months of 2022 compared to last year, according to the Society of Motor Manufacturers and Traders (BBC).

The government has launched a new taskforce with £25 million of funding to try and tackle fraud in Covid-19 support schemes (Financial Times).