MP, Labour’s Shadow Energy and Net Zero
Secretary, responding to BP's Q1 2023 profits,
said:
“These enormous profits are the unearned, unexpected windfalls of
war. And every excess pound that the energy giants rake in is at
the expense of British families.
“Yet after all this time, the Tory windfall tax is still full of
get out clauses with billions being bunged at oil and gas
companies in special subsidies not available in any other part of
the energy sector.
“Labour would be doing the fair and right thing and bring in a
proper windfall tax on oil and gas giants to help freeze council
tax this year.
“That’s the choice Labour would make ahead of these local
elections, because we are on the side of working people unlike
the Conservative Party.
“A vote for Labour on 4 May is a vote to Build a Better Britain
for working people.”
Ends
Notes:
- The government introduced a new tax break when it introduced
the Energy Profits Levy, giving oil and gas giants billions back
in tax relief on investment many were planning anyway. Labour
called for this tax break on the Energy Profits Levy to be
scrapped, as part of its plan for a proper windfall tax.
- Labour would increase the rate of the windfall tax to match
Norway’s rate of 78%, backdate the windfall tax so that surging
profits from January 2022 are included and end the loophole that
means billions are handed back to oil and gas giants.
- Together these changes would raise £10.4bn over 2022/23 and
2023/24, using figures published by the OBR in their March 2023
Economic and Fiscal Outlook that forecast the amount of energy
profits levy receipts and north sea investment in those years.
This would be used to fund the one-year council tax freeze which
would cost around £2.7 billion. Economic and fiscal
outlook - March 2023 - Office for Budget Responsibility
(obr.uk)
