UK Energy Costs

Jacob Young Excerpts

Thursday 8th September 2022 Commons Chamber

[Keir Starmer]

I will give way in just a moment.

The head of BP has called this crisis “a cash machine” for his company. Households are on the other end of that cash machine—their bills are funding these eye-watering profits. That is why we have been calling for a windfall tax since January, and it is why we want to see the windfall tax expanded now, but the Prime Minister is opposed to windfall taxes. She wants to leave these vast profits on the table, with one clear and obvious consequence: the bill will be picked up by working people. She claims that a windfall tax will deter investment. That is ridiculous. These vast profits are not the reward for careful planning. They are the unexpected windfall from Putin’s barbarity in Ukraine. There is no reason why taxing them would affect investment in the future.

Do not just take my word for it. Asked which investment BP would cancel if there were a windfall tax, the chief executive said, “None”—his word, not mine. The Prime Minister’s only argument against the windfall tax falls apart at first inspection, laying bare the fact that she is simply driven by dogma, and it is working people who will pay for that dogma.

[Jacob Young (Redcar) (Con)]

Does the right hon. and learned Gentleman accept that this Government have already introduced a windfall tax, and energy companies today are paying 65% on their profits? What would he rather see that tax set at?

[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.

--- Later in debate ---

[Ian Blackford]

Thank you, Mr Speaker. Let me say, I am sure on behalf of all colleagues, that we are saddened to hear the announcement that has been made. The thoughts and prayers of us all will be with Her Majesty the Queen and indeed with the royal family.

In reality, the one big political question—the real question—was how today’s plan would be paid for and who would pay for it. Ever since the new Prime Minister took office, we have been waiting for these answers, but after all the waiting it could not be any clearer. She set it out very brazenly: the Prime Minister’s plan means that the public pay. She has made the political choice to tax families instead of companies—to put profit over people. Instead of a windfall tax, she has chosen a new Tory tax: the Truss tax—the Truss tax that means that, in the months and years ahead, households and businesses will be punished with higher bills, higher interest rates and higher mortgage costs. A Truss tax means cuts to the vital public services that people rely on and that are used to support the most vulnerable. A Truss tax means a threat to the Scottish budget, which the Scottish Government are using to protect our population and shield workers and public services as best they can.

[Jacob Young]

I am grateful to the right hon. Gentleman for giving way. He seems to be making an argument for a windfall tax on the oil and gas companies. They already pay 65% on their profits. Given that the Leader of the Opposition was not able to answer this question, what would he rather see that tax set at?

[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.