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Windfall tax "flip flopping" is a sign of a government in chaos

May 13, 2022 12:35 PM

ez9w (Photo by Pete Godfrey on Unsplash)Yesterday the Conservative cabinet spent a day in Stoke on Trent where we are assured that the cost of living crisis was top pf the agenda. We will have to take their word for it as nothing appears to have been agreed and no new announcements were made on help for those under the cosh. It looks like Elsie will have to keep using her Freedom Pass for some time yet! ( see http://southsuffolklibdems.org.uk/en/article/2022/1429282/boris-solves-fuel-price-inflation-impact)

With all the major oil and gas companies announcing spectacular profits pressure continues to grow for a one off windfall tax on these profits. If indeed the spike in energy prices is short term such a tax would go some way to allowing further relief to be given to spiralling fuel bills

The main argument against the tax from the Prime Minister and Chancellor is that it would deter investment in renewables and alternative sources of energy. That would have greater validity had not the Chairman of BP said recently that it would not have this effect

Responding to Boris Johnson's latest comments on introducing a windfall tax on the profits of oil and gas companies, Liberal Democrat Leader Ed Davey said:

"The mixed signals from Boris Johnson and Rishi Sunak over a windfall tax are a sign of a government in chaos that is failing to act on the cost of living emergency.

"People want to see decisive action now to help them with soaring energy bills. Instead we have day after day of contradictory statements, while energy companies rake in record profits and families can't afford to put food on the table.

"It is a clear sign that Boris Johnson is simply not fit to lead us through this time of national crisis. We need strong leadership, not endless flip flopping."