Windfall Tax: Oil, Gas and Energy Companies

Lord Forsyth of Drumlean Excerpts

Tuesday 22nd February 2022 Lords Chamber

[Baroness Penn (Con)]

My Lords, I am afraid that the Government do not agree with the approach of the noble Baroness. However, where we do agree is on the essential nature of providing further support to households that are struggling with their fuel bills. That is why we are providing a £150 cash rebate for homes in council tax bands A to D, which is about 80% of all households, and a further £144 million of discretionary funding to councils for those households that would not otherwise qualify for that rebate.

[Lord Forsyth of Drumlean (Con)]

My Lords, if we were really concerned about the cost of energy to poor people in our country, would it not be a good idea to remove the green levies that are adding to their bills? Surely it is naive beyond belief to imagine that we can do without gas and oil in the immediate future. The reason that prices are so high is that we are not able to produce enough of our own gas supplies. That requires investment and surely means not taxing the people who are capable of providing it.

[Baroness Penn (Con)]

My Lords, my noble friend is right that in the short to medium term we will continue to need oil and gas supplies, and that is why the Government think that it is important that investment continues to be made in our oil fields. But we also need to fund the transition to a net-zero economy, where we move more towards clean and renewable energy in the longer term. That is why we have programmes such as the North Sea transition deal, to do that in a managed and orderly way.