Power: ‘Brown must tax vindictive firms’
Reporter: Our Lobby Correspondent
Date published: 16 September 2008
Michael Meacher
GORDON BROWN must make it clear to the country he is putting their needs first and not those of business, Michael Meacher warned last night.
And the Oldham West MP said Labour members would continue to push for a windfall tax on energy giants at next week’s party conference in Manchester.
Mr Meacher said: “I am all in favour of energy efficiency over a period, but people need action now. We are in a crisis situation.
“Everyone would have cheered if a windfall tax had been imposed. It is vindictive that companies are putting up prices by 35 per cent and recording billions of pounds worth of profits. It is preposterous.”
More than 130 MPs, including Mr Meacher, are demanding the Government impose a windfall tax on energy companies as concern for people on low incomes grows with suppliers announcing steep rises in the price of gas and electricity.
Age Concern fears a fifth of UK households — an estimated 4.5 million — are now living in fuel poverty and if energy prices go up by 40 per cent, this could rise to around six million.
If the rise were seen across the country, it could mean an additional 1,881 households in fuel poverty across Oldham, adding to the current 5,700 in the borough
Last week, Gordon Brown dismissed the call for a windfall tax. He said a one-off payment was not the answer, but instead bills needed to be reduced permanently.
However, the Prime Minister’s £1 billion fuel package was soon in trouble as the energy giants warned they would simply pass on their higher costs by further increasing prices.
The dominating issue could fatally undermine Gordon Brown’s hopes of staging a political recovery, after disastrous by-election defeats and many months of polls putting the party 20 points behind the Conservatives.
Mr Meacher added: “I think fuel will be the biggest issue at conference. We have got to keep pushing for a windfall tax.
“It would be extremely popular and show new Labour are not in bed with business but do the best for the public.”
