Tuesday, June 28, 2022

Tory MPs warm to unexpected tax plans

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Labor is tabling an amendment to the Queen’s speech tomorrow calling for the introduction of a windfall tax on oil and gas giants, with proceeds going to poorer households

Labor is tabling an amendment to the Queen’s speech tomorrow calling for the introduction of a windfall tax on oil and gas giants, with proceeds going to poorer households.

Conservative MPs warm to the idea of ​​a windfall tax on energy companies to ease the pressure on struggling families’ living costs ahead of a Labor vote on the issue. I understands.

Tory MPs have said so I They would not expect their peers to revolt against the Government in large numbers – pointing out that it would be unusual for them to vote with Labor and against the Queen’s speech.

However, they said they understood that the government was seriously considering such a policy and indicated there was growing support across the party.

Two backbenchers talked I They understood that the government was hesitating on whether to introduce something similar, although the prime minister said he was not in favour.

Economy Minister Kwasi Kwarteng said on Sunday he opposed the idea as it would discourage new investment.

But the Treasury Department has refused to rule it out, and Chancellor Rishi Sunak said last week he was “not inherently attracted to unexpected taxes” but that “these companies are making a significant profit.”

Proposing some sort of economic deal with these companies to avoid a formal tax, he said: “I want to see significant investment back into the UK economy to support jobs and energy security and I want that see investment soon . If that’s not the case, there are no options off the table.”

A backbencher said they would consider voting for the change on Tuesday, but added that it depends on what has been announced in the meantime.

It “depends more on what the energy companies and the chancellor say by then,” it said.

Another said he supports the policy but is unlikely to vote for the change as the government is already considering it.

A third backbencher said he would vote for a backbench amendment calling for a windfall tax but could not support Labor’s official proposal. “Sounds to me like the government is now tempted by a windfall tax anyway,” they added.

Treasury Select Committee chair Mel Stride said Monday he believes there is “a reason” for an unexpected tax.

The Conservative MP told BBC Radio 4 today The program said it was important to have a “balanced view” and agreed “in principle” with the concern that imposing taxes would discourage investment.

But he added: “At the same time we find ourselves in extraordinary circumstances, the supernatural gains these companies have made are tremendous.

“Personally, I think there’s a case now for considering a one-time windfall tax and channeling that money to those who are really struggling and bearing the brunt of these cost-of-living challenges.”

Senior Tory MP Robert Halfon previously called for a windfall tax to respond to the “massive” pain rising prices are causing.

Speak with I He said the Scottish Tories are leading internal opposition to the measure over fears it would cost jobs, and he argued that some of his colleagues failed to understand the magnitude of the impact of rising gas bills and other rates of inflation.

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