Economy Update

David Duguid Excerpts

Thursday 26th May 2022 Commons Chamber

[David Duguid (Banff and Buchan) (Con)]

As the Chancellor knows, I have spoken in this House and privately to him against Labour’s proposals for a windfall tax—[Interruption.] I was waiting for the heckle. In my opinion, which I believe the Chancellor shares, they were entirely too blunt an instrument and frankly punitive for the sake of being punitive. I welcome his support for those most affected by the rising costs, his more targeted and specific approach to excess profits in the oil and gas industry and the relief on investment, which is already extensive, as he knows.

I have two questions. Can my right hon. Friend provide assurance that that charge will be applied to excess profits and that those will be distinguished from the increase in profits that would be expected in the natural cycle since the downturn of the past 12 years? Will he also commit to continuing the constructive dialogue with the industry that has been evident from this Government, in the interests of energy security and the transition to net zero?

[Rishi Sunak]

My hon. Friend is an excellent champion of the industry, and he is right to be so, because it is an important industry for the success of our future economy. It employs hundreds of thousands of people and it invests an enormous amount. We want to see that industry succeed and I know that, with his support and this Government’s, we will make sure that that happens.