(LD): We can pay for it.
The Government may finally be considering a windfall tax on the
super-profits of the oil and gas companies—which interestingly my
party called for while Labour was still contemplating the issue.
However, a windfall tax does not undercut future investment,
despite what we hear from Ministers. Shell has
announced £8.5 billion in share buybacks for 2022, and BP is
expecting to do at least £6 billion in share buybacks and hopes
that the market will accept more. Companies buy back shares when
they have set aside money for every reasonable investment and are
still awash with cash. There is no investment risk...
(Con):...However, two requirements underline those noble
objectives. The first is that we must bring inflation back down
to 2% and endorse 2% as the Government’s target. We have all
heard stories of so many families who are really struggling,
trying to help their children and themselves just to bring food
to the table because of inflation. Inflation is clearly painful,
but it is more than just a painful economic shock. Inflation is a
corrosive force in our society. It creates suspicion, distrust
and social conflict. It creates a blame culture. People think
that the local corner shop is just jacking prices to do them
down. What about the electricity companies, Shell and
BP and the supermarkets: why is Waitrose increasing prices more
than Aldi and Lidl? It is a very bad culture if we go down that
road...
The Parliamentary Under-Secretary of State, Department for
Business, Energy and Industrial Strategy () (Con):...Of course there
will be other increases in the likes of VAT and other taxes,
which are estimated by the OBR. I will certainly speak to the
Treasury and ask whether we can give my noble friend a more
complete number. However, as I said, the Government keep all
these taxes under review. We made it clear that companies must
reinvest in the UK. In fact, Shell and
BP are already investing hundreds of millions into our economy,
including carbon capture infrastructure in the Humber and on
Teesside...
