Economy Update

Lord Hannan of Kingsclere Excerpts

Thursday 26th May 2022 Lords Chamber

[Baroness Penn (Con)]

This Government have invested significant amounts in renewable energy and will continue to do so. As we set out in our energy security strategy, we have a long-term path for both improved energy security and meeting our goals on net zero.

[Lord Hannan of Kingsclere (Con)]

My Lords, will my noble friend the Minister remind the House that actions have consequences? If you have spent a long time demanding green levies and net zero—a fine, legitimate position—do not now complain about fuel poverty. If, as Members in this House have done, you have opposed trade deals with Australia and New Zealand because they are going to flood us with cheap food, do not complain about the price of food. If you spent two years during the lockdown demanding longer and stricter measures, then spare us the high moral tone about inflation. If you pay people to stay at home while printing more money, then you are bound to have a cost of living crisis. Will my noble friend the Minister comment a little on the fiscal effect of a windfall tax? Ronald Reagan used to say that businesses do not pay taxes, they collect taxes. In this case, as all taxes are paid by human beings, is it not the case that the windfall tax will be passed on to consumers, customers, staff and employers, and will take more money out of the economy?

[Baroness Penn (Con)]

I do not think that is necessarily the case because in the specific circumstances that we are talking about, energy companies have benefited not from greater efficiency in their operations or profitability due to their own efforts, but due to global circumstances. I think that my noble friend and I disagree on green levies and net zero. Actually, our investment in renewable energy has reduced the impact of the current crisis on people’s bills.