Labour Proposes $1.6B Tax to Ease Cost-of-Living Crisis
UK opposition parties are rallying behind a windfall tax targeting North Sea oil and gas producers, aiming to fund household energy bill relief. Shadow Chancellor Rachel Reeves unveiled Labour’s plan to impose a $1.63 billion levy, which the party claims could save households $270 annually while providing $800 in targeted support for low-income families and pensioners.
Soaring Energy Prices Fuel Policy Debate
The proposal comes as UK inflation hits a decade-high 5.1%, with energy costs skyrocketing. Liberal Democrats leader Ed Davey argued, “Fossil fuel companies are raking it in hand over fist… The least they can do is pay a little more to help families this winter.” Meanwhile, Brent Crude oil prices rebounded to $81.9/barrel this week, and North Sea firms are projected to generate $20 billion in cash flow in 2022, per Wood Mackenzie analysis.
Government Rejects ‘Short-Sighted’ Plan
The ruling Conservative Party opposes the tax, favoring targeted aid instead. Education Minister Nadhim Zahawi, a former oil industry executive, criticized the proposal as economically unviable. As debates intensify, millions of UK residents brace for winter amid what analysts call the nation’s worst cost-of-living squeeze since the 2008 financial crisis.
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UK opposition lawmakers call for windfall tax on oil and gas firms
cgtn.com
