Energy Secretary Ed Miliband has criticised opposition parties for wanting to scrap the windfall tax on oil and gas companies.
Reform, the Tories and the SNP want the energy profits levy to be dropped, either entirely, or in favour of a new tax.
Mr Miliband says the EPL, which was extended by Labour to 78%, is helping families tackle the cost of living, though the party has said it was to help raise funds for GB Energy to invest in the transition to renewables.
In a statement today, the minister argues that oil companies are making huge profits as a consequence of the war in Iran, while consumers in Britain are feeling the impact at the petrol pump and in their energy bills.
“It would be completely wrong for a Government to stand by and allow companies to make excess profits because prices have rocketed as a result of the war,” he said.
“That’s why we’re taxing these windfall profits to help with the cost of living.”
The Energy Department adds that “the levy was forecast to raise a whopping £1.7 billion in the next year before the Middle East conflict began.
“That is expected to increase and will help raise funds for measures to ease family finances, make the NHS fit for the future, and transform communities with more cash for parks, playgrounds, and potholes.
“But opposition parties have opposed the policy.”
However, opposition to the EPL is led by the oil and gas industry and wider business leaders who argue that it is causing investment to be withheld and jobs to be lost at a pace that outstrips new jobs in renewables.
They also say that it makes no sense to replace production of the UK’s reserves with imports, noting that this adds to the carbon footprint and loses the Treasury revenue.
Mr Miliband is due to announce whether the Rosebank and Jackdaw fields will be able to proceed. Both have licences and would therefore be allowed to go ahead under Labour policy, but production has been delayed by a court ruling on meeting environmental conditions.
The Chancellor Rachel Reeves is understood to be in favour of allowing them to go ahead.
#Miliband #criticises #demands #scrap #windfall #tax #Daily #Business