Not the solution! Tory Peer criticises one off £120 per household handout

Windfall tax is ‘unconservative’ says Lord Moylan

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Lord Moylan sat down with journalist Andrew Pierce to discuss the political push for a windfall tax.

This week the Government have been discussing possible windfall taxes on energy companies, as energy prices have risen by 54 percent which has affected the most vulnerable in society.

Due to the cost of living crisis, many Britons are struggling to pay the increased costs of energy and food.

Lord Moylan explained that the Labour party needed to think of a more sustainable solution to the energy crisis, besides taxing energy companies.

Lord Moylan told LBC: “We’re resistant because it’s always a bad principle to introduce retrospective taxes on people.

“When businesses plan they know what the tax rate is going to be and it does affect their planning, if you come back later and take some tax out of them, it’s a very unconservative thing to do.

“That’s natural reluctance, it may be something the Government decides to do, and if the companies are relaxed about it, they could just send in cheques anyway.

“It may be something that the Government decides to do.

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Lord Moylan added: “It isn’t going to be a panacea, even if you had £120, one-off, it’s not £120 a week, £120 a year this is a one-off £120.

“And even if it got through to every household in the country, it would have an effect of course it’s better than nothing.

“But it is not going to be the solution and I think although Labour has battered away at this if the Government does have a windfall tax, Labours going to have to think very seriously about more sustainable, durable solutions.

“Than simply a one-off 100 quid, 120 quid important thought, that will be in some households.”

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Earlier this week the Chancellor of the Exchequer, Rishi Sunak address the topic of a windfall tax in Parliament.

Mr Sunak told the Commons: “To the topic of a windfall tax, now unlike the Party opposite we on this side of the house don’t believe windfall taxes are the simple and easy answer to every problem.

“But we are pragmatic, and what we want to see are energy companies who have made extraordinary profits at a time of acutely elevated prices.

“Investing those profits back into British jobs, growth and energy security.

“But as I have been clear and as I have said repeatedly if that doesn’t happen soon, and at a significant scale then no option is off the table.”

Labour leaders have been arguing that Mr Sunak could help millions of people across the country if he was to implement the tax.

John O’Connell chief executive at the TPA believes otherwise, last month Mr O’Connell told Express.co.uk: “Politicians should be wary of the siren song of windfall taxes.

“Taxing energy profits will discourage investment and dissuade new players from entering the market, meaning even bigger price rises or fewer energy suppliers able to weather a future crisis.

“Governments should focus on limiting these haphazard interventions and instead resolutely go for growth with a pro-enterprise, lower-tax agenda.”

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