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City investors relaxed about budget risks; BP profits drop by a third – business live

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Although BP’s profits have fallen, there is still concern that the oil giant is raking in more than $2bn per quarter.

Caroline Simpson, spokesperson for the Warm This Winter campaign, says Rachel Reeves should target energy companies in the budget:

“Another week and another set of obscene profits. This time it’s BP which has pocketed £44.5 billion since the start of the energy crisis.

“That’s why we urge the Chancellor in her budget tomorrow to get tough on profiteers who have made billions milking energy shocks that have left 6.5 million in fuel poverty by clawing back some of that ill gotten gain to fund a social tariff.

“With another quarter comes another galling influx of profits for BP. The fossil fuel industry’s profiteering is only made possible through the destruction of the climate, felt most starkly by countries in the global south.

“As COP29 approaches, leaders of climate-vulnerable countries will be scrutinising the UK’s commitment to reigning in climate-wrecking companies like BP. If this government wants to be taken seriously by the global south and work effectively for a fair end to the climate crisis, it will tax these shameless profiteers to help fund global climate action.”

“These profits are a good reminder that, despite complaints by the oil and gas industry that they are too heavily taxed, companies are in reality awash with cash. It is absolutely right that they pay their fair share while the UK transitions away from expensive oil and gas.

“BPs abandoning of clean energy and climate targets shows that it is operating with no regard for the public interest or the added costs that people in this country are now incurring, both on their energy bills and the impacts of climate change. Why should we have to pay for extra flood defences, or UK farmers be forced to cover the costs of poor harvests, when the companies driving these costs are raking in billions?”

The possibility of looser fiscal policy than previous planned in the upcoming UK Budget on 30th October suggests the risks to our forecast that the 10-year gilt yield will fall to 3.50% by end-2025 are skewed to the upside, even if a repeat of the upheaval in the gilt market that we saw two years ago is highly unlikely.

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