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Treasury Minister Says Unexpected Taxes Cannot Be Excluded Under “Extraordinary” Pressure on Vital Expenditures | Political news

Energy companies could face unexpected taxes if they do not reinvest their bumper profits, the government minister said, acknowledging the “extraordinary pressure on family finances”.

Treasury Secretary-General Simon Clark told Sky News’ Kay Berley that such a charge could not be ruled out, adding that “all options are on the table.”

This seemed to be the strongest hint from the government that an unexpected tax, first proposed by Labor, could be used to offset rising energy costs.

Political center. increase investments or you will face one-time charges, energy companies said

However, it is clear that the Prime Minister and the other members of the government still have to be convinced.

Mr Clark told Sky News’ Kay Berley that the government was aware of “a real challenge for households from the top down”, which is likely to worsen again in the autumn when energy prices rise again.

He added. “Regarding the concept of an unexpected tax, we are very clear that there is a real need when the industry is making a significant profit to see that profit reinvested in new offshore installations. The North Sea, which is obviously vital in terms of energy supply, but also good for jobs and a wider economy.

“If we do not see that investment is being made, then we are very clear that all options are on the table.”

The comments came after Jesse Norman, a former finance minister, became a Tory MP who embraced the idea of ​​an unexpected tax in the wake of “extraordinary times” and insisted that Thatcher would support it “during her pragmatic heyday.”

Former Chancellor George Osborne said on Channel 4’s Andrew Neal show on Sunday that he believed Rishi Sunak would eventually do so.

Mr. Clark’s comments on the option of not leaving the table are the same previously made by Mr. Sunak և other ministers.

This is happening at a time when energy companies are making huge profits due to rising oil and gas prices, and even when that growth is squeezing household finances, it is largely responsible for pushing inflation to its highest level in four decades.

Read more:
What is the unexpected tax, how much do oil companies already pay? Has the UK tried this before?

Mr Clark told Sky News that Mr Norman had made a “very strong point” about the idea of ​​an unexpected tax.

“We, of course, do not rule it out,” he said.

“I never instinctively push for a tax increase to the extent that it jeopardizes investment in new capacities, new jobs, but these are extraordinary circumstances, we realize that there is tremendous pressure on family finances, the industry needs to hear the message. loud և clear.

“If investments do not go away, we can not rule out the possibility of an unexpected tax.

“We are not making any announcements at the moment, but we do not rule it out.”

“If companies do not invest in the North Sea, which is necessary, it means that they’re really only making a profit on the bank; they are doing nothing to justify it, ‘” Clark said.

“These are effective one-off achievements for the industry,” he added.

Labor leader Sir Kir Starmer last week The Prime Minister was accused of bewilderment around the imposition of an unexpected tax, a policy he proposed that the government would eventually have to implement.

Splits have arisen On the offer of Boris Johnson և Mr. Sunak:.

Sky News understands that Mr. Sunak considered it useless that the Tory MPs were ordered to vote against this policy in the Communities.

Abena Oppong-Asare, the secretary of the Labor Party’s shadow treasury, called for more urgency.

He told Sky News that his constituents were unable to take a bus to a food bank or employment center.

“I was disappointed to hear from Simon Clark that they expected to see gas companies take the lead,” he said.

Analysis by political correspondent Tamara Cohen

Tamara Cohen

Political correspondent


Many in Westminster believe that the unexpected tax on oil and gas companies is an imminent turning point, visible from space.

Its political arguments are clear. Households need help to provide unprecedented livelihoods for decades. The public likes the idea, including the majority of those who voted for the Conservatives in 2019. and the oil and gas giants have seen growing profits due to a combination of circumstances beyond their control.

But as always, the details are more complicated, including what will be spent.

Treasury Secretary Simon Clark appeared to be walking around this morning, telling Kay Burley that “these are extraordinary circumstances, we realize there is an extraordinary pressure on family finances.”

Conservatives are not instinctively pushing for corporate tax increases, he said.

However, according to former Finance Minister Jesse Norman in a detailed Twitter post, the government really helped the energy giants, when world prices collapsed in 2014, lump sum taxes on “banks” and energy companies were brought by Thorin. governments in the past.

The tax is presented as a threat if companies do not invest more, or many of the major players have submitted their investment plans for the next decade, worth 70 billion pounds.

Their profits are already taxed at a higher corporate tax rate.

Last year, BP CEO Bernard Looney described his company as “literally a cash register” when oil and gas prices were high as a gift to Labor.

They have been pushing the idea for months, saying an unexpected tax could help the poorest third of households with up to ուն 600.

But the prime minister, some in his cabinet, still have to be convinced of the event or the timing, and some, including business secretary Kwasi Quarteng, strongly oppose it.

Decisions will not be made immediately, as the latest energy tariff forecasts will be published by August.

“It is presented as a silver bullet, it is not one,” said the Prime Minister’s ally.

There are questions about how the money will be distributed, and Boris Johnson assumes that he is trying to invest money in renewable energy as a means of protecting against further price increases, rather than a feature of rapid consumption.

Labor has offered to use the money to extend the discount on warm homes, but many conservatives will prefer tax cuts.

This morning, one option was ruled out – the increase of benefits.

Simon Clark said the 20 20 a week increase given to families to overcome the epidemic was “not going to come back”.

Treasury Minister Says Unexpected Taxes Cannot Be Excluded Under “Extraordinary” Pressure on Vital Expenditures | Political news

Source Treasury Minister Says Unexpected Taxes Cannot Be Excluded Under “Extraordinary” Pressure on Vital Expenditures | Political news

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