Boris Johnson has said he will look at introducing a windfall tax on oil and gas companies but believes they are not the right way forward. Rishi Sunak, the chancellor, is threatening to implement a windfall tax due to concerns that energy companies are not investing enough in the UK.
Bernard Looney, the chief executive of BP, said his company wouldn't change its investment plans if the government imposes a windfall tax. In the first quarter of this year, BP made 5 billion profits, while Shell made 7.3 billion. Johnson, asked about Looney's comments, told LBC: "Well, you know, then we ll have to look it." He repeatedly refused to rule out implementing a windfall tax, but made clear he was opposed to the principle. I don't like them, I don't think they are the right way forward. He said that he wanted companies to make big, big investments. The disadvantage is that they discourage investment in the things that we need to invest in new technology, new energy supply, and in the things that are not covered by those kinds of taxes.
I want them to make those investments, so I'm saying that. They have to be investing in new energy supply for our country. Sunak told the BBC: I am not naturally attracted to windfall taxes in general. There are two camps of people. Windfall taxes are not the answer, and some people think windfall taxes can never be the answer. I am not in either of the schools of thought. I am not naturally attracted to the idea of them.
I know that these companies are making a lot of profit because of the very elevated prices. I want to see significant investment back into the UK economy to support jobs and to support energy security. I want to see that investment soon. If that doesn't happen then no options are off the table. Johnson will urge cabinet members to bring the benefits of the Queen's Speech to life as they meet for an away day in Stoke-on- Trent, Staffordshire. Downing Street said ministers would discuss how the new legislation would bolster the economy, improve living standards and increase opportunities across the country.
Johnson suggested that the government would be coming forward with more assistance for hard-pressed families in July. His office was forced to deny that ministers were preparing an emergency budget to deal with the cost-of-living crisis after he suggested in the Queen's Speech on Tuesday that there would be more help in the days to come.
Johnson stated in his LBC interview that there would be additional support over the summer rather than waiting for the budget to act in the autumn.
There is more coming down the track. He said that in July. We will use all the ingenuity and compassion we have and the fiscal firepower that we have as a result of the strong economic growth we had coming out of the pandemic. Our growth will return very strongly in the next couple of years. He made comments at the first meeting of the government's cost-of-living committee this week, where he instructed ministers to come forward with proposals to ease pressure on household budgets.
Robert Halfon, a senior Tory MP, has called for a windfall tax to respond to the pain of rising prices.
He told the i: I had a Tory MP I m not going to name them say to me in the Commons tea room, Oh you always go on about this as if it is not a big issue. It is huge. There is more anger about that than the partygate stuff. Scottish Tories are resolutely opposed to the idea, which they say would cost jobs.