Kwarteng and Sunak at odds over windfall tax on oil and gas profits

Government sources play down idea of cabinet split as business secretary quashes idea recently mooted by chancellor

Government sources have played down the idea of a cabinet split over a possible windfall tax on energy companies as the business secretary, Kwasi Kwarteng, firmly quashed the idea, days after it was mooted by the chancellor.

In a search for solutions to a crisis over energy prices, and the cost of living more widely, Rishi Sunak said a windfall tax, as advocated by Labour, was possible if energy companies did not properly reinvest bumper profits.