Windfall Tax: Oil, Gas and Energy Companies

Baroness Boycott Excerpts

Tuesday 22nd February 2022 Lords Chamber

[Baroness Penn (Con)]

My Lords, Labour may say that it would impose a windfall tax immediately but under its proposals the support would not then be passed on to consumers immediately; it would take far longer under its plans to get money into people’s pockets. Furthermore, Labour’s plans for a VAT cut would not target support at those who most need it, with some of the wealthiest households saving the most money under the proposals.

[Baroness Boycott (CB)]

My Lords, surely the Government agree that the long-term future has to be renewable energy, yet at the moment the oil companies are putting out that 20% to 25% of our energy bills is coming from green levies, when in fact the figure is 8%. This cannot be the moment that we take our foot off the gas, so to speak. Will the Government give the House a guarantee that they will not reduce the green levy but look to increase it, so that we do not end up with these problems again and again?

[Baroness Penn (Con)]

My Lords, I would not speculate on the green levy or any other tax or levies outside of the Budget process. What I would say to the noble Baroness is that we remain committed to our transition to net zero. While we recognise that in the short term we need to continue our oil and gas supplies, in the longer term we need to move to greener forms of energy.