Energy (Oil and Gas) Profits — House of Commons, 2022-07-05
Topic: Macroeconomics
Lucy Claire Leigh (Frazer) (Conservative, Centre-right): It is a pleasure to respond to many of the interesting points that have been made, and I wish to touch on a few of them. The hon. Member for Ealing North (James Murray) suggested that this was his proposal for a windfall tax that we have adopted, but he will know that this is not Labour’s proposal, because it is significantly different. Not only does it bring in further revenues, but it introduces an investment incentive, to ensure that we get more from our oil and gas sectors The hon. Member also mentioned the cost of living. He will know that we are spending £37 billion on supporting people when they most need it, but the most important point is about fiscal responsibility. We on this side of the House believe in fiscal responsibility. That is why, unlike Labour, we have not made £100 billion-worth of unfunded spending proposals, which no amount of taxation would fund. I understand the points that my hon. Friend the Member for Poole (Sir Robert Syms) makes. No Conservative Government is keen on additional taxes, but, as he will know, this is a temporary, short-term, focused additional tax that has a sunset clause and might well be brought to an end—there are provisions to allow that—when revenues return to normal I remind the House that the hon. Member for Glasgow Central (Alison Thewliss) called for more windfall taxes on other industries. That is obviously something that we would oppose, but the interesting point she made was about what she said was the mismanagement of resources. I remind the House of the mismanagement of the SNP Government in Scotland, whose health, education and justice budgets are growing more slowly in real terms than UK spending, and that the reason for that is the 50% increase in their welfare budget The hon. Member for Edinburgh West (Christine Jardine) suggested that her proposal would have delivered £3 billion more if this tax had been introduced earlier, but she forgets that the Lib Dem proposal was significantly less than what we have proposed in terms of revenues. The Lib Dems were proposing a 10% increase in the supplementary charge. She will know that our proposal is for a 25% increase Finally, I understand the perspective of the hon. Member for Brighton, Pavilion (Caroline Lucas), given where she comes from on these issues, but I am grateful that she has indicated that she welcomes the levy, although of course she would like it to be broader. With those comments, and with the leave of the House, I commend the Bill to the House Question put and agreed to. Resolved, That provision may be made for, and in connection with, imposing a charge on ring fence profits of companies (within the meaning of Part 8 of the Corporation Tax Act 2010) Ordered, That a Bill be brought in on the foregoing Resolution; That the Chairman of Ways and Means, the Prime Minister, Secretary Kwasi Kwarteng, Secretary Alister Jack, Chris Heaton-Harris, Greg Hands, Mr Simon Clarke, John Glen, Helen Whately and Lucy Frazer introduce the Bill Energy (Oil and Gas) Profits Bill Lucy Frazer accordingly presented a Bill to make provision for, and in connection with, imposing a charge on ring fence profits of companies Bill read the First time; to be read a Second time tomorrow, and to be printed (Bill 135) with explanatory notes (Bill 135-EN).