Rachel Reeves to make £20m a day in tax from Iran war chaos

Rachel Reeves is in line for a multibillion-pound tax windfall as the war in the Middle East drives up energy prices. A new analysis has suggested that the Government is raising about £20million a day in extra revenue through levies and taxes linked to the price of oil and gas.

The additional revenue also includes billions of pounds levied from North Sea oil and gas profits, power generators and VAT on petrol sales. If fuel prices were to remain at their elevated level for 12 months, the Treasury would bring in an extra £8billion a year, compared with the most recent forecasts, The Times revealed. Now, Starmer's Government is being urged by lobbying groups to use the cash to protect households and drivers from the spiralling cost of energy as war rages on between Donald Trump and Iran.