Oral Answers to Questions

Jo Stevens Excerpts

Wednesday 23rd March 2022 Commons Chamber

[Mr Speaker]

I call the shadow Secretary of State.

[Jo Stevens (Cardiff Central) (Lab)]

The boss of oil giant BP said last month that it had more money than it knows what to do with, which is completely the opposite situation to that of households right across Wales that cannot cope with record inflation and astronomical energy bills under the watch of the right hon. Gentleman’s Government, so why will he and the Chancellor not agree to a one-off windfall tax on oil and gas producers?

[Simon Hart]

There are two points I would like to make. The first one I have already made, which is not to prejudge what the Chancellor is going to say in his statement in a few minutes’ time, which will address this and I hope numerous other issues that are occupying the minds of Members across the House, in fact. As far as the second point is concerned, I am afraid a slightly well-trodden path of the Opposition is to confront every possible problem by finding somebody and taxing them. We do not believe that is necessarily the answer, because we want energy companies to be part of the solution and also to be part of future and ongoing investment in energy infrastructure, and they will not do that—and will not be able to do that—if all the Government’s responses are simply, as I say, to identify them and tax them. It may be a populist gesture, but it is not actually going to solve the problem that we both wish to try to resolve.

[Jo Stevens]

I am afraid the Secretary of State is completely out of touch with public opinion on this. Polling this week, published by 38 Degrees, shows that 69% of the Welsh public say that the Government’s energy bill loan package is not enough to help those struggling with their energy bills, and 67% support Labour’s windfall tax because it would mean £200 off energy bills now and £600 off energy bills for the hardest-hit households in Wales. This would be a tax on the unexpected profits of oil and gas companies, so why is he on the side of those oil and gas companies, not on the side of the Welsh public?

[Simon Hart]

I think that just defaulting to a 38 Degrees petition as if that is some kind of solution to a very complex and long-standing problem is a cheap and populist way out of this. We are taking a more responsible view, as I hope she will hear from the Chancellor later. There have already been numerous interventions—for example, we have provided an additional £180 million to the Welsh Government in this particular context—so I urge the hon. Member not just to press the petition button and think that that is all the Opposition have to do. We have to do a lot more than that if we are serious about addressing the long-term challenges that face us all. None of us is without this: we all have constituents with these problems and we all know exactly the challenges she refers to.