BORIS Johnson and Rishi Sunak will decide in days whether or not to whack a windfall tax on energy giants.
The PM and Chancellor are said to be “aligned” on the issue — and using a levy on firms’ better than expected profits is still on the agenda.
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It came as Downing Street denied it had already blocked the Treasury from imposing a tax after top aides branded it “un-conservative.”
The PM’s spokesman said if energy firms fail to invest in the economy the threat of a levy will remain on the table.
One government source said: “It’s for the Treasury to decide whether energy firms are doing enough. They need to make a decision soon.”
The PM and Chancellor will meet next week to discuss a cost-of-living rescue package amid rising public alarm.
Market research firm GFK’s economy confidence index is at a new low of -40, below the 2008 banking crisis level.
Some £40billion — almost 2 per cent — was wiped off the FTSE100 list of UK’s biggest companies yesterday. Inflation has hit 9 per cent.
A poll revealed seven in 10 Brits expect the economy to worsen in the next 12 months.
Some 37 per cent trust Labour most to reduce the cost of living compared to 22 per cent for the Tories.
Treasury minister John Glen told Times Radio “more will be required” to help the economy and those who need “additional assistance”.
Labour said the Government was acting like “headless chickens”.
