BUSINESS LIVE: Tax rise fears as energy prices soar

BUSINESS LIVE: Tax rise fears as energy prices soar; Business chiefs lash out at PM; CMA says BA and Ryanair lockdown customers have no right to refund

Rocketing gas prices and rising inflation are threatening to blow a hole in Rishi Sunak’s Budget plans, which could force the Chancellor to raise taxes.

The cost of UK gas for November delivery shot up 40 per cent yesterday, following a steep increase over the past month prompted by a shortage of gas flowing into Europe and the UK.

Industry bosses last night accused Boris Johnson of setting Britain on the path to rampant inflation as the Prime Minister stepped up his battle with business.

Firms warned labour shortages – which have triggered empty shelves and queues at petrol stations – will lead to spiralling prices unless the Government intervenes.

Britain’s competition watchdog the Competition and Markets Authority said on Thursday that ‘a lack of clarity in the law’ means it is unable to ensure customers of British Airways and Ryanair, who were prevented from flying due to Covid-19 restrictions, can secure a refund.

The CMA launched a probe into the airlines in June over concerns they may have broken the law by failing to offer refunds for flights customers could not legally take during periods of lockdown.

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Chancellor Rishi Sunak is under pressure ahead of his budget as energy prices soar