UK Energy Costs

Barry Gardiner Excerpts

Thursday 8th September 2022 Commons Chamber

[Keir Starmer]

We are talking about what happens this winter and next. If the hon. Gentleman does not understand—[Interruption.] I will tell him something. Every pound the Prime Minister’s Government refuse to raise in windfall taxes, which is leaving billions on the table, is an extra pound of borrowing. That is the simple, straightforward argument. Every pound that she leaves on the table is an extra pound of borrowing, loading the burden of the cost of living crisis onto working people who will have to pay back for years to come.

[Barry Gardiner (Brent North) (Lab)]

The Prime Minister has been careful to frame her guarantee in terms of her refusal to tax, but will she not have a problem explaining to the British people how a levy on their bills in the future to repay the borrowing is not actually a tax?

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[Ian Blackford]

I am grateful for that intervention. If the hon. Member just bears with me, I will come to that specific point, but the issue of who pays is important, because there is no—[Interruption.] Well, actually I will do, and the right hon. and learned Member for North East Hertfordshire (Sir Oliver Heald) might actually show some respect, if he does not mind. At the end of the day, oil and gas producers are making windfall profits. Our constituents, and his constituents, are suffering. It is right that we look at the contribution that those making windfall profits will make, and I will come to that.

[Barry Gardiner]

rose—

[Chris Law (Dundee West) (SNP)]

rose—

--- Later in debate ---

[Ian Blackford]

I need to make progress.

We are all too aware, however, that that is nowhere near enough to mitigate the effects of the crisis, because most of the key economic levers lie here in Westminster. If the new Prime Minister is serious about helping everyone through the winter, she should at least lift universal credit by £25 a week. Although I welcome her remarks about those who are off grid, we must be given clarity about support for those across swathes of rural Scotland who rely on oil heating and are not subject to the price cap.

Clarity is also needed for those who have accepted fixed-term contracts at a higher rate in a bid to weather the storm. They must be allowed to switch to benefit from the support that has been put in place. Crucially, vital support for the most vulnerable must go hand in hand with the UK Government increasing the budgets of the devolved Administrations, or granting them greater powers to borrow, so that they can do more to help all public service workers and the most vulnerable.

[Barry Gardiner]

I am grateful to the right hon. Gentleman, who is making a broad and apposite speech. He was challenged on the rate of tax that he believes is appropriate, but he will know that prior to the introduction of the windfall tax, the UK had the lowest tax rate of any oil and gas producer in the world. He was challenged on 65%, which is actually 6% below the average of all producers in the world. If he were prepared to go to the global average, it would still mean that relief could be given to taxpayers in this country.

[Ian Blackford]

The hon. Gentleman’s intervention makes an awful lot of sense. We should reflect on the fact that oil and gas companies are making additional profits not because they are improving their businesses or investing, but simply because oil and gas prices are higher. It is right in that context that our consumers and businesses are compensated. Why on earth are we sitting back and allowing the oil and gas companies to engage in billions and billions of dollars of share buybacks?