Editorial: Windfall taxes are apt in these exceptional times of sky high energy prices and fuel poverty

There are, for example, regular clamours to hit the wealthiest 1% of the population harder in tax, when in fact that top 1% pays almost a third of UK revenues (£71bn of £251bn total last year, according to the government).

And even if you confiscated the wealth of that much criticised top 1% of earners, it would not even come close to meeting the UK's income needs. But to do such a thing would destroy Britain's reputation as a place in which to do business and create enterprise.

Similar problems arise with the taxation of companies. It is easy to say that these entities do not pay enough, but much harder to work out what they actually should pay, when their earnings are spread globally.

Windfall tax calls could easily become huge and perpetual tax demands that, as when applied in other nations, drive business out.

This newspaper is a strong believer in fiscal responsibility, including the lowest taxes and state expenditure that are compatible with being a civilised western society with a generous welfare net for everyone who needs it.

But there is a specific and grave moral problem with energy companies making massive profits in a captive market out of the fluke of a spike in fuel prices, caused by multiple and global factors, via prices that cause real hardship to households on the lowest incomes.

The chancellor Jeremy Hunt has said that windfall taxes are acceptable only if they are temporary and do not damage investment.

With Shell and now BP having recorded bumper profits of many billions, Mr Hunt's increase in the Energy Profits Levy from 25 per cent to 35 per cent, which brought the marginal rate for some company profits to 75 pence in the pound, is appropriate in these exceptional circumstances.