London Daily

Focus on the big picture.

UK Companies Accused of Profiteering Post-Pandemic

Study Reveals 30% Increase in Profit Margins Since 2019
A comprehensive study by the trade union Unite has revealed that thousands of UK companies have increased their profit margins by 30% on average since the pandemic, redistributing wealth from employees to employers and shareholders.

The analysis, covering 17,000 companies, shows pre-tax profit margins in 2022 were significantly higher than in 2018 and 2019.

This increase has sparked concerns of profiteering during the inflation crisis, exacerbated by the reopening of economies post-lockdowns and the war in Ukraine.

Various sectors, including banks, shipping firms, and veterinary practices, saw profit margins rise even as real wages fell and investments decreased.

Electricity generation companies and big banks benefited the most, although government windfall taxes on these sectors mitigated post-tax profit margins.

The Energy Price Levy increased windfall tax on energy companies to 35%, and corporation tax combined with the Bank Levy increased tax on banks to 28%.

Notably, medium-sized companies like private equity-backed veterinary practices saw profit margins jump by 280% during the pandemic.

The Bank of England initially attributed inflation to wage rises but now acknowledges that rising corporate profits are a significant factor.

Studies by the International Monetary Fund and the European Central Bank support this view, highlighting that corporate profits contribute to higher inflation.

Economist Isabella Weber from the University of Massachusetts Amherst criticized central banks' responses, noting that higher interest rates have led to further windfall profits for banks at the expense of ordinary people.
Newsletter

Related Articles

London Daily
0:00
0:00
Close
Formal Address for Meghan Markle at Invictus Games
Understanding the US Electoral College System
Apple Launches AI Features on Select iPhones
JP Morgan Sued Customers Over Viral Cheque Fraud Scheme
King Charles to Continue Global Tours Despite Cancer Diagnosis
Venice Extends Tourist Entry Fee Program to 2025
Tommy Robinson Charged Under Terrorism Act for Phone Offence
Plans to Increase Employers' National Insurance Announced
Washington Post Editor-at-Large Robert Kagan has RESIGNED after owner Jeff Bezos BARRED the endorsement of Kamala Harris.
Massive Theft of Artisan Cheddar from Neal’s Yard Dairy
US Man Charged with Murder of Co-Worker over Breaks
Carbon Monoxide Incident Claims Lives at UK Care Home
Birmingham Airport Evacuated Due to Suspicious Vehicle
Former US President Barack Obama raps the lyrics to Eminem's ‘Lose Yourself’ after the rapper introduces him at a Kamala Harris rally in Detroit
KYIV URGES NORTH KOREAN TROOPS IN UKRAINE TO SURRENDER
Ofcom Identifies Link Between Social Media Posts and UK Unrest
Russian Boxer Receives Lifetime Ban for Illegal Move in Boxing Debut
Biden Labels Trump a Threat to Democracy
McDonald's Linked to E. coli Outbreak Leading to One Death
Teacher Enoch Burke arrested at Wilson’s Hospital School in Ireland after refusing to endorse and affirm transgender ideology.
FBI Investigates Leak of US Intelligence on Israeli Strike Plans
Israeli Airstrike Targets Hezbollah's Financial Resources
China’s Baidu is revolutionizing transportation with its robotaxi service
Angela Rayner Secures Permanent Seat on UK National Security Council
Russian Ambassador Claims UK's Proxy War in Ukraine
Doctor Advocates for Assisted Dying Law Reform
Ruth Davis Appointed as UK’s First Nature Envoy
Pressure Mounts on Starmer to Discuss Reparations at Commonwealth Summit
James Cleverly’s Costly In-Flight Catering for Government Trips
AI Regulation Takes Center Stage in 2024 US Presidential Campaign
NASA Study Explores Potential Microbial Life Beneath Mars' Ice
Cats: The Liquid-Like Pets
Netanyahu Condemns Alleged Hezbollah Assassination Attempt
Liam Payne's Tragic Death: Tributes Pour In
Cuba's Power Struggles: Nationwide Blackout Strikes Again
Xi Jinping Urges Troops to Prepare for Conflict Amid Taiwan Drills
Farage Supported by US PR Team Linked to Steve Bannon
Controversy Over MP's Comments on Female Candidate's Family Responsibilities
Highlights from the Conservative Leadership Contest TV Debate
Childminder Jailed for Inciting Racial Hatred After Southport Attack
NHS England's Repair Bill Soars to Almost £14 Billion
Russia Accused of Using Incendiary Devices to Disrupt Western Confidence
Culture Wars: 'A Dog Whistle to Attack the Right', Says Badenoch
Virtual Reality and Advanced Technologies in Combating Cocaine Addiction
Chancellor Rachel Reeves Assembles Taskforce to Safeguard Financial Stability Amid Increased Borrowing Plans
RAF Typhoon Intercepts Air India Flight After Bomb Threat
Hamas Chief Yahya Sinwar Killed in Israeli Operation
Fruit Fly Gut Hormone Study Sheds Light on Human Longevity
Tragic Loss: Liam Payne's Passing in Buenos Aires
Liam Payne's Tragic Death in Buenos Aires
×