Energy companies could face a tax loss if they don’t reinvest their huge profits, a government minister has said as he acknowledged “unusual pressures on the family finances”.
Simon Clarke, chief secretary of the Treasury, told Sky News’ Kay Burley that imposing such a tax could not be ruled out and that “all options are on the table”.
It appears to be the strongest suggestion yet from the government that a wind tax, first proposed by Labor and to be used to help offset rising energy bills, could be through the.
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However, it is understood that the prime minister and other members of the cabinet are still not convinced.
Mr Clarke told Sky News’ Kay Burley that the government realized the “real challenge for households above and below the country” was likely to get worse in the fall as the cap on energy prices rose again. again.
He added: “In terms of the wind tax concept, we’ve been very clear that there is a real need at a time when the industry is generating very substantial profits to see those profits reinvested in other assets.” new overseas base – get more out of the North Sea, obviously important in terms of energy supply but also good for jobs and the broader economy.
“If we don’t see that investment come to fruition then we’re very clear that all options are on the table.”
Read more: What is a wind tax, how much do oil companies pay and how much has the UK tried it?
The comments come after Jesse Norman, a former Treasury Secretary, became the latest Tory MP to accept the idea of a winning tax at “unusual times” and suggested that Mrs Thatcher “in the course of time” pragmatic prime minister” would support it.
George Osborne, the former prime minister, told Channel 4’s Andrew Neil program on Sunday that he believes Rishi Sunak will eventually do so.
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Economy ‘very difficult’ for UK people
Mr. Clarke’s comment on the option is not out of the box repeating these Previously performed by Mr Sunak and other ministers.
It comes at a time when energy companies are reaping huge profits from soaring oil and gas prices even as that surge is squeezing households’ finances – and in large part driving it. Inflation hit a four-decade high.
Mr Clarke told Sky News Mr Norman took a “very strong position” on the idea of a wind tax.
“We certainly don’t rule it out.” he say.
“I’ve never been instinctively drawn to raising taxes because it threatens to hinder investment in new capabilities and new jobs – but these are exceptional cases where we find there are unsettling pressures.” It is often for home finance and industry to hear the message loud and clear.
“If the investment fails then we cannot rule out having to do a wind tax.
“At this point we’re not making any announcements but we’re not ruling that out.”
Mr. Clarke said: If companies don’t make the necessary investments in the North Sea, it means they are “essentially just profiting and not doing anything to justify those things”.
“These are one-time benefits and unusual for the industry,” he added.
Labor leader Sir Keir Starmer last week accused the Prime Minister of dithering on the imposition of a wind tax – a policy he suggested the government would eventually have to enact.
Cup appeared between Boris Johnson and Mr. Sunak on the proposal.
Sky News understands that Mr Sunak considers it futile for Tory MPs to be ordered to vote against the policy.
Abena Oppong-Asare, Labour’s shadow has overtaken the secretary of the Ministry of Finance, calling for more urgency.
She told Sky News she has people who can’t afford to take the bus to get to a food bank or job center.
“I was very disappointed to hear from Simon Clarke that they are waiting to see from the gas companies about showing leadership on this issue… it’s just a no-brainer about the fact that the government is should get to work on this,” she said.
