Oil tax windfall conceded by chancellor

Britain's chancellor Alistair Darling has conceded that the current prices for gas and oil could lead to the Treasury enjoying a substantial tax bonus.

According to reports, Mr Darling has confirmed that any increases in the cost of fuel lead to revenue increases from petroleum revenue tax and North Sea corporation tax receipts.

"Higher oil and gas prices do generate greater receipts from both North sea corporation tax and petroleum revenue tax," said Mr Darling, in a report by the BBC.

However, Mr Darling has rejected any notion of a windfall in the field of VAT.

In related news, Mr Darling has issued a warning, stating that the current year will be "difficult", given that the UK economy is currently slowing, the broadcaster added.

During an interview with Radio 4, Mr Darling said: "We have got to be vigilant in relation to all pay settlements, public and private"