Liz Truss plays down calls for windfall tax
Foreign secretary Liz Truss has played down calls for a windfall tax on energy firms, saying “we need to attract investment”, and a tax would be a deterrent.
Speaking on Sky News this morning, she appeared to be at odds with calls made by the Chancellor Rishi Sunak yesterday, who said nothing was off the table for energy firms.
When asked why the government didn’t implement it, she said: “The problem with a windfall tax is it makes it difficult to attract future investment into our country. So there is a cost in imposing a tax like that. And my view, is lower taxes are the best way to attract more investment to get the businesses into this country that can create these high paying jobs, which is what we need to face down these global headwinds. “
This comes after the war in Russia has intensified the cost of living crisis, with inflation hitting nine per cent this morning. Energy firms have made bumper profits as Britain removes Russian energy, and looks to shore up fuel security.
While also touching upon eternal shocks to the economy, she was asked about BP making £6.2bn in profit, and said instead of a one-off tax, firms like BP “need to be doing is unlocking their balance sheets and investing in the United Kingdom. That’s the way we’re going to get the sustainable future that we all want. But But he says that he is going to do that anyway.
Asked whether she’d “rather have a recession then get these big oil giants to pay windfall taxes, Truss said “we’re very, very concerned about the circumstances people are facing. But ultimately, our country’s long term future is dependent on creating those high paid jobs getting that investment into Britain.”