Nicola Sturgeon claims oil and gas windfall tax not fair due to impact on Scottish industry
01.06.2022 - 18:43
/ dailyrecord.co.uk
Nicola Sturgeon has claimed Scottish industry is footing the bill for the UK Government’s response to spiralling energy costs across the UK.
The First Minister said the windfall tax on oil and gas firms had not been implemented fairly as the sector north of the border was carrying a “disproportionate burden”.
Chancellor Rishi Sunak bowed to pressure last week by unveiling £15bn of measures to tackle the impact of soaring inflation, which has reached a 40-year high.
Every household will get a £400 energy bill discount under a cost-of-living package partly funded by a £5bn windfall tax on oil and gas companies, many of which operate in Scottish waters.
The Tory Government had resisted a windfall tax but relented after pressure by Labour, while the SNP are also sceptical of a standalone tax on one industry.
Speaking at Holyrood, Sturgeon said: “After months of delay, the UK Government belatedly conceded the need for a windfall tax to help those struggling to make ends meet. Action that the Scottish Government had been urging them to take.
“However, we have also made the point that oil and gas companies are not alone in profiting from recent global events, and that a windfall tax should apply to all companies posting significantly higher profits.”
She added: “The Chancellor's failure to implement this fairly now means that Scottish industry is carrying a disproportionate burden of funding what is a UK-wide response, and it also means that the support available is still far too limited.
“By widening out and using the fiscal headroom available, the chancellor could have gone beyond one-off measures and introduce long term strategies such as, for example, introducing an equivalent of the Scottish child payment.”
Asked by an SNP MSP