Cumbria’s only opposition MP says the Government’s U-turn over a windfall tax on oil and gas firms was ‘better late than never’.
Liberal Democrat Tim Farron, who represents Westmorland and Lonsdale, said Chancellor Rishi Sunak’s announcement that the Government would impose a one-off charge on the companies’ record profits was a huge relief to families suffering due to the cost of living crisis.
Households are facing soaring bills as food, energy and fuel prices have increased and inflation has hit a 40-year high.
Mr Sunak announced that a 25 per cent charge would be levied on profits of oil and gas companies and said it would help fund a £15 billion package from the Government to help people, including a £650 one-off payment for eight million low income households, and a change to the £200 loan scheme for energy bills for all homes in the autumn – increasing it to £400 without the need to pay it back.
He added that a new investment allowance would be introduced so for every pound a firm invested, it would get back 90 per cent.
He said the windfall tax would be removed when energy prices returned to normal.
Liberal Democrats put forward the idea of a windfall tax on the profits of oil and gas companies in November and Labour mooted its own version in January. The idea was rejected by the Government, which said it could deter investment in the UK.
Mr Farron said: “Thank goodness that families will finally get support with their energy bills through a windfall tax – seven months after the Liberal Democrats first called for it.
“It’s incredibly frustrating and that the Government dragged their feet over it for so long while people struggled to heat their homes and feed their kids, and that they’ve only decided to do this now in an attempt to save the Prime Minister’s skin.
“This is a humiliating U-turn from a government in chaos, but a huge relief to the millions who are suffering.”
