Ed Miliband urges PM to close ‘Swiss cheese’ holes in windfall tax on energy firms | Tax and spending
Rishi Sunak has been urged to close the holes in his “Swiss cheese” of a windfall tax on energy companies after Shell and British Gas reported significant profits, with Labour calling the government’s stance “perverse”.
Billions of pounds will go to shareholders instead of being recouped in tax and put towards more help for those struggling to pay their bills, according to Ed Miliband, the shadow net zero secretary.
He accused ministers of not being committed to the “green sprint” and said Labour would tackle the cost of living and climate crises simultaneously.
The attack on Sunak’s windfall tax came as Miliband acknowledged that the expansion of the clean air zone across London in part cost Labour the chance of winning the Uxbridge and South Ruislip byelection last week.
The move was a concern of voters, he admitted, adding there should be “more help” for those who would be affected across Greater London.
Labour and the Conservatives’ commitment to net zero has come under scrutiny in recent weeks. Reports of Shell and British Gas’s profits in the first six months of 2023 has reignited the debate over how politicians balance the cost of pursuing the target with keeping voters onside.
British Gas reported its highest-ever first-half profits, of almost £1bn, while Shell has reported profits of just over $5bn (£3.9bn) for the second quarter of the year.
Miliband said Sunak had been “dragged kicking and screaming” to implement a windfall tax on oil and gas firms. The existing policy was like a “Swiss cheese” and “full of holes”, the Labour frontbencher claimed.
He called for the current rate, 75% of profits, to be upped to 78%, and criticised the so-called super-deduction that allows companies to reduce their payment if they invest in British energy projects, saying Labour would close the “loophole”.
“These are unearned, unexpected profits,” Miliband told BBC Breakfast “This is because Russia launched an appalling invasion of…
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