South West Wiltshire MP backs windfall tax on energy firms

Andrew Murrison admits there could be consequences though

Author: Faye TryhornPublished 25th May 2022

One of Wiltshire's MP has spoken out in favour of imposing a windfall tax on energy companies - to help with the rising cost of living.

Dr Andrew Murrison says in his latest online blog that it's been done successfully before, but there could be consequences.

There's been pressure on the Government to bring in a levy for firms making large profits, while bills are increasing massively for households.

The regulator Ofgem has warned that the price cap could rise again this October, to somewhere in the region of £2,800.

Andrew Murrison MP says if the public wants to see a windfall tax, it should happen:

"I have no principled objection to windfall taxes - Margaret Thatcher imposed them on banks in 1981 and George Osborne did something similar with oil and gas producers in 2011 when prices and profits were high. Those who claim they're unconservative are plainly operating from a different script to me.

"I would be prepared to support them as part of a package of targeted measures in order to help relieve the energy price hit we're set to take in the autumn if the industry cannot demonstrate quickly that it will using its big profits to shift to geopolitically reliable, green, cheap energy streams for the future.

"But there are drawbacks to this windfall tax. They would not be a panacea since even if you fleece producers receipts won't be nearly enough, they would hit pension funds and savings, reduce confidence in the UK as a place to invest and, inevitably, cut the amount industry can be expected to put towards shifting from fossil fuels to renewables."

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