The timing is certainly awkward. Oil giant Shell has reported underlying profits of £7.2 billion in the first quarter of this year, up 43 per cent on the final three months of 2021, thanks to high oil and gas prices. It comes days after BP announced profits of more than £5 billion, its highest quarterly take since 2008.
At the same time, millions of Britons are bearing the brunt in the guise of soaring energy bills, alongside higher food, transportation and housing costs. With wages failing to keep up with inflation, it is producing a cost of living crisis. We need more ideas from the Government on how to combat the crisis because the Spring Statement did not go far enough.
Opponents of a windfall tax, including the Prime Minister, argue they are counterproductive because they deter investment, lead to capital flight and are even morally dubious. Shell and BP have also had to write off losses following their exits from Russia.
But economics is not a morality tale, and the investment defence has even been rejected by BP’s chief executive Bernard Looney, suggesting that the industry itself is factoring in the possibility of a windfall tax. When asked what investments his firm would cancel if the Government imposed a windfall tax, Looney replied: “None.”
The term “windfall” refers to fruit that the wind blows from a tree — a prize for whoever finds it, without forethought or the need for a ladder. The sudden jump in energy prices was unforeseen by oil firms and governments alike and has indeed been a gift.
Public companies are not charities; they have a legal duty to shareholders. And governments should not levy taxes that damage the economy. But if the Prime Minister and his Chancellor cannot find a way to better protect people from a collapse in living standards, they must seriously consider turning to business for a windfall tax.
Answer to PPE waste
Two years ago, as the first wave of the pandemic was raging, countries around the world were desperate to get their hands on personal protective equipment (PPE). Surgical face masks were, and remain, critical for medical professionals, who can change them many times per hour in order to meet strict hygiene requirements.
Used masks, however, create a disposal issue. At present they are burned — but they could soon be transformed into prosthetics, bedpans and syringes under plans being considered by one of the capital’s largest NHS trusts.
Imperial College Healthcare has received a grant of £44,000 to work on the large-scale recycling of masks. If successful, the pilot could be rolled out across other trusts, helping the NHS to meet its commitment of becoming net-zero by 2045. PPE is vital and necessary, but waste is not.
Make your voice heard
It’s election day. You don’t need a polling card, driving licence or strong personal views on the future of bin collections. Just head to your local polling station, with or without a dog, give them your name and address, and make your voice heard. And, of course, follow the Standard’s coverage online at standard.co.uk/elections.
