According to the London Daily Mail, Brown is preparing to link tax rates more closely to the profitability of North Sea oilfields in a move that would vastly increase Treasury revenues.
It’s possible that Brown could include the move in his pre-Budget report on Wednesday, when he is expected to unveil a financial aid package aimed at fuel price protestors.
Money obtained by squeezing the profits of oil companies would be channelled various ways, including lowering road taxes for truckers, the Mail reported.
Apparently, Brown’s determination was intensified Thursday when Shell reported record profits thanks to soaring world oil prices, announcing an 80 percent jump in earnings for the last three months.
Last week the four largest U.S. oil companies reported profits up by as much as 135 percent.