People across the country are facing a worsening cost-of-living crisis, yet the profits of some of the UK’s biggest companies are surging.
Profits’ were up 34 per cent at the end of 2021 compared to pre pandemic levels for the UK’s largest non-financial companies.
Research by the IPPR and Common Wealth argues profit restraint is needed to curb inflation. They recommend a global windfall tax that could raise as much as £10 billion.
Our Pandemic Profits research last year argued in favour of a similar tax on excess profits made during the covid pandemic.
Why are some companies’ profits surging while an increasing number of people are facing a cost of living crisis? Research out this week from Unite argues the two might be linked.
The trade union has accused companies of driving inflation higher by engaging in “price gouging”. This is where businesses hike their prices far above supply costs – applying unnecessary financial pressure on consumers.
At a time when workers are being asked to curb their calls for pay rises, this research shows that the real problem may sit with companies profiteering from a crisis.