Oil and Gas Producers: Windfall Tax

Debate between Rupa Huq and Ed Miliband

Tuesday 1st February 2022 Commons Chamber

[Edward Miliband (Doncaster North) (Lab)]

I beg to move,

That this House notes the cost-of-living crisis hitting families across the country and that the energy price cap is predicted to rise by 50 per cent from April; recognises that rocketing energy prices are hitting businesses as well as household budgets; calls on the Government to introduce a windfall tax on the profits of North Sea oil and gas producers; and further calls on the Government to use that windfall tax to help fund a package of support for families and businesses facing the energy price crisis.

In the last few days, we have often heard the Government say that they are desperate to talk about the biggest issues facing the country. Conservative Member after Conservative Member has lined up to say that there is nothing they would rather do than end the distractions and talk about the burning issues facing people. I have to say, Madam Deputy Speaker, where are they all? Where are they? Today, we are giving them—[Interruption.] There are a few of them, but not very many. Today, we are giving them and the House the chance to talk about those issues, and there is no bigger issue facing families than the energy price crisis. For months, we have waited for the Government to tell us what it is that they are going to do and there has been silence. Today, we are making a generous offer to focus on what really matters and to give them the chance to support the principle of a windfall tax on the oil and gas companies to help to address the energy crisis.

Let me set out the case. In just six days’ time, we will know the scale of the price cap increase to be announced by Ofgem. It is expected, on the latest gas prices, that there will be a £600 increase in the cap, on top of the £120 increase we have already seen. April’s increase alone is expected to drag 1.5 million more families into fuel poverty. Let us be absolutely clear what that means. Consider a recent Citizens Advice case of a man in his 60s from Devon who had given up his job as an engineer when he was diagnosed with spinal cancer. He had been claiming universal credit but cannot work and recently saw that drop by £20 a week. He told Citizens Advice:

“I don’t buy the things I need to buy. I’m constantly looking at the bank account. I put things off as I can’t afford the petrol to drive. I feel isolated and stressed, but what can I do? I’m living in one room to keep the heat down as low as I possibly can, but everything is just mounting up. It’s direct debit after direct debit.”

I have had similar cases in Doncaster. This is the reality facing millions in our country, and that is before the price cap has actually gone up. It is against the backdrop of inflation running at nearly 6% and the national insurance rise on top. So people are facing very difficult times. Businesses, too, are facing great difficulty as a result of what is happening.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

Does not my right hon. Friend agree that the Government’s version of the energy price cap, along with “use it or lose it” penalties on developers, banning letting fees for tenants and gender pay gap reporting, have his fingerprints all over them from our 2015 Labour manifesto, but that, unfortunately, they have made the schoolboy error of copying homework incorrectly? That is why we now need a windfall tax to rectify those errors. In a parallel universe—the Miliverse—this was done right, but sadly it has been done all wrong by them!

[Edward Miliband]

I thank my hon. Friend for that intervention. I am old enough to remember when an energy price cap was living in a “Marxist universe” and now it is Government policy.

The Federation for Small Businesses reports that 45% of members are seeing soaring costs from higher energy bills. Meanwhile, the Energy Intensive Users Group, representing vital industries such as steel and pharmaceuticals, has called repeatedly for “immediate action”.

This is an economic crisis plain and simple. What is extraordinary is that the Government, months into the crisis, have not produced a single solution. Where is the solution? There can be no greater evidence of a Government paralysed by inaction. Millions of families who want reassurance are instead subject to the spectacle of a rule-breaking Prime Minister still too distracted by trying to save his own skin.

Our case today is that millions of struggling families should not be left to face this situation alone and that we should do all we can to act. It is right to look to those benefiting from this crisis to make a contribution.

European Union (Notification of Withdrawal) Bill

Debate between Rupa Huq and Ed Miliband

2nd reading: House of Commons
Wednesday 1st February 2017 Commons Chamber

[Edward Miliband]

My hon. Friend makes his point very well, and I shall come on to that in a moment.

Our responsibilities do not end here tonight or with the passing of this Bill. It is deeply problematic that the Government are embarking upon this process without any objective economic analysis of its implications, without clarity on key issues such as the customs union and without any sense of what transitional arrangements might look like, on the basis of what I believe is the fanciful proposition that all the future arrangements can be tied up within 18 months.

On day one of the debate, a number of speakers powerfully made the point that, given the paucity of information we have been given before article 50 is to be triggered, it is even more important that there should be proper parliamentary scrutiny, including a meaningful vote in this House, before the end of the process. The Prime Minister’s apparent wish that our choice will be to accept her deal or face a hard Brexit on World Trade Organisation terms is quite wrong. Such a take-it-or-leave-it option would fly in the face of the central proposition that won the referendum—namely, that we want to take back control and restore parliamentary sovereignty. So I hope that Members—particularly Conservative Members—however they voted in the referendum, will support the amendments that seek to ensure proper parliamentary sovereignty throughout the process. I believe that parliamentary scrutiny will help the Government. It will improve any deal, it will strengthen their hand with the European Union and it will make it more likely that the Prime Minister will end up with a deal that has the support it needs in the country.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

Does my right hon. Friend agree that, without the safeguards he seeks, there may be a crock of something at the end of the rainbow but it might not be gold?

[Edward Miliband]

My hon. Friend puts it very well. This is deeply uncertain, and the truth is that the Government have not really levelled with the country about the trade-offs. At the moment, they are saying that they can have everything, and I fear that pretty soon in the negotiations we will discover that that is not the case.

I want to focus not on the economic questions, which were well worn yesterday, but on an equally important issue that has received less attention in this debate but is absolutely crucial: our place in the world and our foreign policy relationships after Brexit. The foundation of our foreign policy for a generation has rested on the combination of a special relationship with the United States and, crucially, our relationship with the European Union.

Enlargement of the EU following the fall of the Berlin wall—as a nation, we advocated for that enlargement; leadership on climate change under the last Government and, I freely say, under this Government; a commitment to the rule of law and human rights; a belief in the importance of multilateral institutions—all of these have been bound up in our relationship with the European Union, and we should not be under any illusion about the real risk that, following our departure, our influence in the world will be weaker, not stronger.

I negotiated on climate change for the last Labour Government, and our strength, our power, our standing on that issue came from our membership of the European Union because we accounted for 10% of global emissions, not just 1%. The House should therefore recognise that the question of what strategic relationships come after Brexit is fundamental to the issue of real sovereignty and our ability to have an effect on the big issues that will affect us.