Foreign secretary Liz Truss today said a windfall tax “makes it difficult to attract future investment into our country”.
“The problem with a windfall tax is it makes it difficult to attract future investment into our country – so there is a cost in imposing a tax like that,” she told Sky News.
“My view is that lower taxes are the best way to attract more investment – to get the businesses into this country that can create these high-paid jobs, which is what we need to face down these global headwinds.”
It comes as inflation hit a 40-year high, figures from the Office For National Statistics showed.
Truss said: “We are in a very very difficult economic situation. We’re facing some very very serious global headwinds. Inflation is extremely high.
“What we’re doing is working to increase growth in our economy, attract investment to the United Kingdom, to face down these global headwinds.
“But there’s no doubt it is very difficult for people across Britain and in fact across the world.”