Extract from oral
answer (Lords) on Energy Profits Levy
(Lab): My Lords, the
Government’s energy levy leaves billions in excess profits on the
table while many households struggle through an unprecedented
cost of living crisis. Only last week BP announced quarterly
profits of over £6 billion while Shell recorded
a quarterly profit increase of 22%, handing a further £5 billion
to shareholders and now allocating more to dividend payments
alone than to its entire investment in renewables. Given that,
and with households and small businesses facing sky-high energy
bills, how well does the Minister think the current levy is
working?
The Parliamentary Secretary, HM Treasury () (Con): I welcome the noble
Lord to the Front Bench. He referred to figures that are the
global profits of companies. As I have said to his noble friend,
the UK applies its windfall tax to UK profits, and I think that
is the Labour proposal also. Abolishing the investment allowance
would be counter-productive. As I have said, the UK is still
reliant on gas for its energy supply. Reducing incentives to
invest would lead to investors pulling out of the UK, damaging
the economy, causing job losses and leading to lower future tax
revenue—tax revenue that we have used to put in place
unprecedented cost of living support to families, which is still
going out to households at the moment, so that those who are
worried about their bills who are on low incomes and means-tested
benefits can look forward to more support coming from the
Government over the next year.
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Extract from second
reading debate (Commons) on the Energy Bill
(Bath) (LD):...The Government
continue to protect the oil and gas giants. Typical direct debit
customers have seen their annual gas and electricity bills almost
double, while oil and gas giants have announced record profits.
Last year, Shell forcibly
installed prepayment meters in over 4,000 homes while making £32
billion in profit. UK consumers have been among the least
protected in Europe. When will this Government put struggling UK
citizens first?
(Ceredigion) (PC):...It was
mentioned earlier that one way of financing greater support for
households could be a new tax on share buybacks. We have read in
the news about Shell and
its £3.2 billion plans announced in that regard, and we must
question whether such funding could be used to increase support
provided under the energy price guarantee in advance of next
winter. Another round of the alternative fuel payment could be
guaranteed, set at a level which better reflects the increase in
the cost of alternative fuels experienced by off-grid households.
In that regard, I am very grateful that the Government and the
Minister are considering additional support for energy-intensive
businesses not connected to the mains gas grid. That should be a
priority...
