Rachel Reeves is facing mounting calls to raise taxes on companies profiting from the US-Israel conflict with Iran, with charities and unions urging the chancellor to use the revenue for emergency cost-of-living support. An open letter to Keir Starmer and Reeves, signed by Greenpeace UK, the National Education Union and Tax Justice UK, argues that energy firms, banks, defence companies and tech giants are making windfall gains from the crisis.
The group wants Labour to strengthen its existing North Sea energy windfall tax and introduce new levies on other sectors. They claim the extra revenue could fund emergency household support and bolster UK energy resilience. “We urge you to make this crisis a turning point for the UK,” the letter states, calling for systemic tax reform and investment in energy security.
Reeves has signalled the government is ready to provide targeted help amid surging energy prices, and has warned companies against profiteering. The Competition and Markets Authority has been instructed to crack down on price gouging. However, the chancellor had been planning to ease the North Sea windfall tax before the 28 February attack on Iran.
Pressure is also coming from Labour peer Richard Walker, chair of Iceland supermarkets, who urged Starmer to explore a profits cap on energy and fuel firms. The campaign group Mainstream, launched with Andy Burnham's backing, is among the signatories seeking to shift Labour's direction ahead of May's local elections.
Faiza Shaheen, executive director of Tax Justice UK, said: “Spain has already frozen rents, yet our government fails to show urgency. The chancellor needs to get a grip to help people struggling and ensure this crisis does not make the rich richer.” A Treasury spokesperson noted existing sector-specific taxes on banking and energy, and highlighted new measures to prevent price gouging, including a Fuel Finder tool for drivers.
