world-economy

UK Closing Oil and Gas Tax Loophole to Fund Living Cost Relief

The UK government will eliminate a tax loophole affecting oil and gas companies as part of a broader cost-of-living support package, Chancellor of the Exchequer Rachel Reeves announced Thursday. The revenue from closing the loophole will fund measures designed to shield households and businesses from inflation pressures. Separately, Reeves outlined plans to relax ring-fencing rules that currently require large banks to separate retail and trading operations. This move is intended to free up additional lending capacity for British firms. The government said the banking changes would unlock financing to support economic activity. The dual approach targets both consumer relief and business investment, with economists noting the measures could ease pressure on the Bank of England's inflation-fighting efforts.