The cost of living crisis could be tackled with a broader windfall tax on excess company profits instead of a raid on North Sea oil and gas firms, according to a north-east MP.
Stephen Flynn, the SNP’s business spokesman at Westminster, argued for the wider focus on profits as he called on the Chancellor to deliver support without delay.
Labour has already backed a one-off windfall tax on the oil and gas sector to raise £1.2 billion as part of its pledge to reduce the average household energy bill by £200.
The SNP is proposing a wider tax on profits that takes in a larger range of businesses, including those outside the oil and gas industry such as retail giant Amazon.
Mr Flynn, speaking ahead of a Westminster debate on Wednesday, said: “It is only right that companies making these huge profits shoulder the burden that families face.
“This must be a balanced approach across companies, which recognises investment in communities rather than the ill-considered smash-and-grab on the north-east of Scotland proposed by others.”
Crisis ‘spiralling out of control’
Mr Flynn said other countries across Europe are already taking “meaningful action”.
He warned more families will be pushed into poverty unless Chancellor Rishi Sunak changes course.
“Millions of families face a devastating blow to incomes as the Tory cost of living crisis spirals out of control,” he said.
“With a week until the spring budget, it’s absolutely essential that the Chancellor stops making excuses and delivers a comprehensive package of support without further delay.”
Unprecedented measures
Prime Minister Boris Johnson warned last week that a one-off tax on the oil and gas industry would only lead to higher prices.
Speaking at prime minister’s questions, he said: “The Chancellor has set out plans to help families with energy costs with unprecedented measures to abate council tax by £150, in addition to all the other schemes that we are putting forward.
“It is absolutely right that we need to meet the long-term impacts of the spike in energy prices and that’s why I will be setting out an energy independence plan for this country in the course of the next few days to ensure that we undo some of the damage of previous decisions taken, not least by the Labour government not to invest in nuclear.”
Oil and gas windfall tax: Why are people calling for it, and what could it do to jobs and bills?