London Daily

Focus on the big picture.
Sunday, Jul 06, 2025

Cost of living: Labour to call vote on windfall tax for oil and gas companies

Cost of living: Labour to call vote on windfall tax for oil and gas companies

Labour will call for a vote on Tuesday to introduce a windfall tax on oil and gas companies, saying it is shameful not to introduce the measure to help tackle the rising cost of living.

Shadow minister Ed Miliband told the BBC it was obscene the government had refused to bring in the policy.

A windfall tax is a one off levy on companies enjoying unexpected profits.

Business Secretary Kwasi Kwarteng said it was a bad idea that would deter firms from investing in the UK.

But a Treasury source said the option was "not off the table".

Opposition parties have repeatedly touted the idea of a windfall tax on the record profits of oil and gas companies, saying the money raised could be used to help those struggling the most with rising living costs.

Ministers had dismissed the policy, but attitudes within government appeared to warm this week, with Chancellor Rishi Sunak threatening to introduce the measure if the firms did not invest enough in new projects.

Prime Minister Boris Johnson also said the government would have to look at the proposal if not enough investment was made.

Despite Mr Kwarteng's comments, a Treasury source told the BBC that the chancellor remained pragmatic about the idea and he still held the same position as earlier in the week.

Labour's shadow chancellor, Rachel Reeves, accused the cabinet of being in "complete chaos" over whether to back the tax.

Households in the UK are being hit with rising costs when it comes to fuel, energy and food, as inflation reaches a record high in the country.

Labour, the SNP and the Liberal Democrats have all proposed using a windfall tax to raise money to support the hardest hit.

A debate on the Queen's Speech is to be held on Tuesday, and Labour will put forward an amendment to allow the Commons to vote for or against the measure.

Shadow climate change secretary - and former party leader - Mr Miliband told the BBC's Sunday Morning programme it would give Conservatives MPs a choice, saying: "You can vote for a windfall tax or you can explain to your constituents why you are refusing to provide them the help that they need."

He added: "I think it is obscene, frankly, that we have as a result of surging energy bills, oil and gas companies making billions of pounds in our country and the government refuses to put a windfall tax on them. It is shameful.

"The case for a windfall tax now is unanswerable... Everyday that goes by is sleepless nights for millions of people with this government refusing to help."


'More investment'


Mr Kwarteng said the government had already put forward £9bn of support for those struggling with their bills, including a £150 council tax rebate for rate payers.

He said it was right for the chancellor not to "take anything off the table" four months ahead of the government's next budget.

But despite hints at a change of direction from the government, the business secretary told Sunday Morning his own view was that he did not believe in windfall taxes.

Mr Kwarteng added: "What you are taxing is investment in jobs, you are taxing investment in wealth creation, you are taxing investment in new technologies.

"And that is what we want to see, we want to see more investment. We don't want to see taxes that essentially act against any incentive to invest."

The minister said also called the policy a bad idea, and an old one, saying: "I am not surprised that a Labour frontbencher is saying we should put up taxes - that's not something that is new to me."


Ed Miliband: It's shameful not to bring in a windfall tax

Kwarteng: I don't believe in windfall taxes


Newsletter

Related Articles

0:00
0:00
Close
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
×