Discussions have been held with the sector about ending the 35% windfall levy on profits if energy prices fall below a specified long-term level. The chancellor, Jeremy Hunt, is said to be open to the idea as it would provide tax certainty the sector boosting investment in new energy projects.

Mr Sunak is expected to announce a series of measures for energy security and net zero targets this week at what has been dubbed “Green Day” by Whitehall, the Financial Times reports.