Scottish Greens call for ‘meaningful’ windfall tax on fossil fuel giants

A “meaningful” windfall tax on fossil fuel giants is more urgent than ever, the Scottish Greens have claimed.

The party said that, without action, it will be a “long, hard winter for millions of households”.

It comes as Shell this week reported its second-highest quarterly profit on record, with global profits reaching £8.2 billion between July and September.

However, the business avoided paying the UK’s windfall tax as it said it had invested heavily in the North Sea.

The Scottish Greens said that while Rishi Sunak introduced a windfall tax on energy profits during his time as chancellor, it was “unfit for purpose” and “far too low”.

Its energy and environment spokesman Mark Ruskell said: “Without fundamental action from Westminster, this will be a long, hard winter for millions of households and families across Scotland and beyond.

“This is one of the wealthiest societies in the world, yet, as winter bites, the Tories are introducing cuts while many are already being forced to choose between heating and starving.

“Meanwhile, the oil and gas company executives are laughing their way to the bank while profiting from the misery, which is having a devastating impact on household bills and the world around us.”

Mr Ruskell also warned that the awarding of new oil and gas exploration licences is “the worst kind of climate vandalism” and urged for a “full-scale restructuring” of the economy involving a shift away from fossil fuels.

He said: “One step we could take very quickly, which could make a big difference and fund the transition, would be a proper, meaningful windfall tax on the obscene profits that are being made.

“The money raised could be used to deliver real relief for people here and now while supporting a major investment in renewable energy and allowing us to finally break the link between fossil fuel prices and household bills.

“It has to be a real tax, not like the one that Rishi Sunak introduced as chancellor, which was totally unfit for purpose. It was far too low and it actually rewarded companies for new drilling operations.

“We are at one minute to midnight. It is time for the UK Government to finally step up and take the climate action that is needed to reduce bills and accelerate our pathway towards a just transition away from fossil fuels.”

A UK Government spokesman said: “The Energy Profits Levy – which comes on top of an existing 40% headline rate of tax for the industry – is expected to raise £17 billion this year and next to help fund cost-of-living support for eight million people.

“We also want to see the sector reinvest its profits to support the economy, jobs and our energy security, which is why the more investment a firm makes into the UK, the less tax they will pay.”