Labour to propose windfall tax on gas and oil firms as household bills skyrocket

Labour will look to put the Government under pressure to tackle the cost-of-living crisis by calling on MPs to support its bid for a windfall tax on gas and oil companies.

The party will put forward a motion on Tuesday for the tax, which aims to stop energy producers benefiting from excess profits while households face rising payments.

Energy bills are projected to rise significantly in April, while fossil fuel companies are expected to report “near-record” incomes over the past year.

Labour has said scrapping VAT from energy bills for one year, while increasing the Warm Homes discount to 9.3 million people, would also alleviate the extra costs for the poorest people.

The average household would pay £200 less on their bills if the Government adopted Labour’s plans, the party has said.

Shadow secretary for climate change Ed Miliband said the Government must act to support working people instead of siding with energy companies.

He said: “In the face of rocketing energy bills, it is right that those who have profited during the crisis pay their fair share.

“That is why the public agree with Labour’s proposal for a windfall tax on oil and gas companies to help fund a package of relief for working people.

“But this Conservative Government’s clear opposition to this measure tells you exactly whose side they are on – and it’s not the British people struggling with their energy bills.

“It tells you everything you need to know about this Government that they believe we should prioritise oil and gas companies making huge windfall profits that they say are ‘struggling’, rather than the British people who face the true struggle to pay their energy bills.

“The British people need a Government that will take on vested interests and put working people first.”