Oil price boosts UK tax coffers

Government finances have received a boost from surging oil prices, which in turn have increased tax revenues in recent months, according to the National Institute of Economic and Social Research.

Link: Oil giants should donate to ward off tax

Senior research fellow Ray Barrell told The Guardian that oil prices were about $10 a barrel higher than last quarter, which had boosted UK tax revenues by about £2bn in the fiscal year just ended.

But he thought that taxes would still need to rise by £7bn to £8bn a year in the next parliament to help the chancellor meet his fiscal ‘golden rules’.

The think-tank’s latest quarterly review of the global economy also found that the UK’s economic prospects were brighter than that of the US.

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