Labour leader Sir Keir Starmer has called on prime minister Boris Johnson to stop “choosing to let people struggle when they don’t need to” and impose a windfall tax on the record profits of energy firms.
Labour and other opposition parties have been lobbying for the tax to help ease the current financial burden on households.
Hitting out at Johnson’s “dithering” over the issue at Prime Minister’s Questions, Sir Keir said: “Whilst he dithers British households are slapped with an extra £53 million on their energy bills every single day. Meanwhile, every single day North Sea oil and gas giants rake in £32 million in unexpected profits.
“Doesn't he see that every single day he delays his inevitable U-turn - he's going to do it - he's choosing to let people struggle when they don't need to?”
Sir Keir added that a “one-off tax” on the significant profits accumulated by energy firms could “raise billions of pounds” and “cut energy bills across the country.”
While Johnson did not rule out bringing in a windfall tax when pressed on the issue, he did hit out at Sir Keir and Labour for having “a lust to raise taxes.”
Explaining to the Commons that his party was “not in principle in favour of higher taxation”, Johnson said: “We don't relish it, we don't want to do it, of course we don't want to do it, we believe in jobs, and we believe in investment, and we believe in growth.”
However, the PM said that ministers would “look at all sensible measures” to help families adjust to rising costs and reiterated some of the measures that the government had already put in place to help families.
“In July, we will have the biggest tax cut for 10 years, £330 cut on average for 30 million people who are paying National Insurance Contributions and the reason we can do that is because we have a strong and robust economy,” Johnson said.
“I'm going to look at all measures in future to support, of course I am, but the only reason we can do that, the only reason our companies are in such robust health is because of the decisions that this government has taken.”
Chancellor Rishi Sunak has recently hinted that he is “pragmatic” over the idea of a windfall tax and could impose one on energy firms who do not invest enough of their profits into future energy projects and instead choose to sit on their new wealth.
In the background, UK inflation has risen to nine per cent, the highest level seen in 40 years, as energy bills have exponentially gone up.
The SNP’s leader in Westminster, Ian Blackford, suggested that if the Treasury does not act on the cost-of-living and blocks any further support measures being mooted by government, then the PM ought to dismiss the chancellor.
Blackford said: “For weeks the prime minister has been briefing that it is the Treasury who are to blame for blocking financial support for struggling families.
“Well, prime minister, it's time to stop sniping from the side lines. If this chancellor won't deliver an emergency budget, it's time for the prime minister to sack the Treasury, to sack the chancellor, and to put somebody else in office that will act.”
Image taken from Wikimedia Commons
