Labour’s call for a windfall tax on energy giants to help people deal with the cost-of-living crisis has been voted down.
The fifth day of the Queen’s Speech debate saw MPs raise their concerns on “tackling the short-term and long-term cost-of-living increases”.
During the Commons session, Labour forced a vote on its amendment on a windfall tax on the excess profits of oil and gas companies, a move designed to bring down the cost of soaring energy bills.
The motion expressed regret at the omission of the policy from the government’s priorities for the next parliamentary session.
In the event, the government won the vote by 310 to 248, a majority of 62. The division list suggest not a single Conservative MP backed the policy.
Ahead of the division, Conservative former minister Robert Halfon and Mel Stride, Tory chairman of the Treasury committee, both indicated support for the policy, with the former labelling oil company bosses “the new oligarchs”.
Shadow climate change and net zero secretary Ed Miliband said he would have “no idea” how he would cope with soaring energy bills if he was on the basic level of Universal Credit.
He added on the windfall tax: “The truth is, they have run out of excuses, and amidst the chaos and confusion about what their position is, I think a massive U-turn is lumbering slowly over the hill.
“But I say this to the Chancellor: swallow your pride and get on with it.”
Chancellor Rishi Sunak repeated his claim that “no option is off the table”, and that only if oil and gas giants do not invest their profits back into “growth, job and energy security” could the policy could be introduced.
TUC general secretary Frances O’Grady, responding to the result, said: “Conservative MPs have chosen to side with profiteering oil and gas companies over working people.
“Millions are being walloped by soaring bills and prices – having been left badly exposed to this crisis after more than a decade of standstill wages and cuts to social security, overseen by successive Tory governments.
“All the while the likes of Shell and BP are registering eye-watering profits.”
Conservative MP Laura Trott argued windfall taxes would be discouraging competition.
She explained that while BP and Shell could absorb a windfall tax, the problem would be with the “smaller players”.
Trott said: “(Mr Miliband) was absolutely right when he said that BP and Shell have not said that this is a disaster for them, but in many ways they wouldn’t. They are huge players in this market.
“Actually, they can absorb a windfall tax. The problem will be much more with the smaller players, the discouragement to competition that this might result in. And I strongly believe that the best way we can drive down prices in this market is by encouraging competition.”