US to hit oil companies with disaster tax

Oil companies are to be hit with a US tax rise to help deal with the fallout and clean-up from the massive oil spill in the Gulf of Mexico.

President Obama is rushing through legislation to add a further one cent tax per barrel of oil. The money will be used to swell the coffers of the Oil Spill Liability Trust Fund to the tune of $500m (£340m) over ten years, reports The Times.

The president has already detailed a $118m spending plan to provide financial assistance to those affected by the disaster and help monitor its impact. BP is expected to pick up the largest share of the costs for the plan.