UK Energy Costs

Tanmanjeet Singh Dhesi Excerpts

Thursday 8th September 2022 Commons Chamber

[The Prime Minister]

Earlier this week, I promised that I would deal with the soaring energy prices faced by families and businesses across the UK, and today I am delivering on that promise. This Government are moving immediately to introduce a new energy price guarantee that will give people certainty on energy bills, and will curb inflation and boost growth. The guarantee—which includes a temporary suspension of green levies—means that from 1 October a typical household will pay no more than £2,500 per year for each of the next two years, while we get the energy market back on track. It will save a typical household £1,000 a year, and it comes in addition to the £400 energy bills support scheme. It supersedes the Ofgem price cap, and has been agreed with energy retailers.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

rose—

[The Prime Minister]

I will give way in a few minutes, when I have made some progress.

We will deliver this by securing the wholesale price for energy, while putting in place long-term measures to secure future supplies at more affordable rates. We are supporting the country through this winter and next, and tackling the root causes of high prices, so that we are never in this position again.

[Mr Dhesi]

rose—

[Mr Toby Perkins (Chesterfield) (Lab)]

rose—

--- Later in debate ---

[Keir Starmer]

I would be absolutely amazed if Government Members have not picked that up. Ask voters whether they think it is fair that they pick up the bill, rather than those companies that made profits they did not expect to make. There is only one answer to that question. It is a very simple question of whose side are you on.

I am afraid this is not a one-off. Not only is the Prime Minister refusing to extend the windfall tax; she is choosing to cut corporation tax—an extra £17 billion in tax cuts for companies that are already doing well. That means handing a tax cut to the water companies polluting our beaches, handing tax cuts to the banks and handing a tax cut to Amazon. She is making that choice, even though households and public services need every penny they can get. Working people are paying for the cost of living crisis, stroke victims are waiting an hour for an ambulance and criminals walk the streets with impunity. It is the wrong choice for working people; it is the wrong choice for Britain.

[Mr Dhesi]

The Government appear to have decided to deal with this energy crisis on the backs of ordinary hard-working Brits, and to load huge levels of debt on to future generations, rather than properly taxing the billions of pounds of excess profits of the energy companies. Why are the Government on the side of big corporate rather than ordinary hard-working Brits? Is it because the Prime Minister is a former employee of Shell and is therefore on the side of oil and gas companies instead of protecting ordinary working British people?

[Keir Starmer]

I am grateful for that intervention. It comes down to this basic point. All hon. Members recognise that profits are needed for investment in all businesses, but in this case these are profits that the companies did not expect to make. When the chief executive of BP says that the windfall tax would not deter any investment, it is a bit rich for Government Members to say that he is completely wrong. He is the chief executive of BP. He has made his case and it is the complete opposite of the case the Prime Minister is trying to make.

The immediate cause of this energy crisis is Putin’s grotesque invasion of Ukraine. We stand united in our support for Ukraine. If we are to defend democracy, defeat imperialism and preserve security on our continent, Putin’s aggression must fail. Whatever our political differences, the Prime Minister will always have my full support in that common endeavour. But we must ask ourselves why we are so exposed to changes in the international price of oil and gas. Why are we so at the mercy of dictators able to pull the plug on wells and shut down pipelines? Why is there such a fundamental flaw in our national security?