Boris Johnson is “simply running out of excuses” to not impose a one-off windfall tax on oil companies, Labour has said.
Ahead of forcing a Commons vote on a windfall tax for North Sea energy profits, Ed Miliband said the money raised would be far more than originally expected and could be used to take £600 of household bills this autumn.
Labour released calculations that forecast North Sea oil and gas profits for this financial year would be greater than all UK households have paid in increased energy bills.
Figures based on estimating future North Sea profits suggest that total profits for the year in the sector will be £19.5 billion, up from £11.75 billion the year before.
The £680 increase in the energy price cap will cost UK households an estimated £18.8 billion, said Labour.
Miliband, the Shadow Energy Secretary said: “It’s time the government dropped their threadbare excuses, did the right thing and put a windfall tax on oil and gas producers to deliver real help for families and pensioners.”
A Labour amendment to the Queen’s speech on Tuesday will try to force the tax on oil and gas firms’ profits.
It said the plan would mean up to £600 in “extra support” for the “squeezed middle”, pensioners and the lowest earners as companies see their balances boosted by an increase in wholesale energy prices.
Shell reported its highest-ever quarterly profits two weeks ago, making £7.3 billion in the first three months of the year which was nearly triple the £2.6 billion for the same period in 2021.
BP’s profits for the first three months of 2022 more than doubled to £4.9 billion.
Tory MPs are expected to vote against the amendment with chancellor Rishi Sunak and Boris Johnson holding the line that they are not in favour of taxing the energy companies as it would lead to less investment in the North Sea.
The debate comes as Labour warned that a real term drop in wages will have a massive effect on the cost of living crisis.
While unemployment fell according to the latest figures wages fell by 1.2 per cent, the biggest fall since 2013.
Labour said there would be a big drop in living standards as a result.
Jonathan Ashworth, the Shadow Work and Pension Secretary, said: “Real wages have now fallen to almost £300 lower than they were 15 years ago."
He added: "Alongside a decade of the Conservatives’ failure to grow the economy, their punishing tax rises, surging inflation and real terms cut to support mean people across the country are facing a cost of living tsunami.”
“By refusing to take action on the cost of living through an emergency budget, Rishi Sunak has shown once again the Tories simply aren’t on the side of working people.”]
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