Labour bid to force vote on windfall tax on oil and gas producer profits

Oldham West and Royton MP Jim McMahon

Labour is urging MPs of all political parties to vote for a one-off windfall tax on oil and gas producer profits, as the cost-of-living crisis continues to escalate.

Oldham West and Royton MP Jim McMahon has slammed as 'shameful' that Boris Johnson and Rishi Sunak still appear to be refusing to back a windfall tax.

Labour's amendment will be voted on during the Queen’s Speech debate on Tuesday. 

Labour first called for the windfall tax on January 9, to fund a VAT cut on home energy bills and expand and increase the Warm Homes Discount, saving families struggling with soaring costs up to £600 off their bills.

Since then, the party has called on the Conservative Government to bring forward this change almost 250 times.

It comes as BP and Shell alone have made £12.37bn of profit in the first three months of 2022 – despite Cabinet ministers describing these companies as "struggling" when defending the Conservatives' refusal to implement a windfall tax.

Analysis by the Labour Party on Sunday showed the expected profits of North Sea oil and gas firms in 2022/23 are higher than the combined rise in energy bills for every household in the UK.

As well as growing support from the Conservative backbenches, there is also widespread public support for a windfall tax, including senior business figures such as the chairs of Tesco and John Lewis. 

Mr McMahon said: "As energy bills for thousands of families in Oldham rise by record amounts, it is shameful that Boris Johnson and Rishi Sunak still refuse to back a windfall tax that could help tackle the cost of living crisis.

"Today, Labour will give MPs another chance to support our one-off windfall tax on oil and gas producer profits to bring down bills.

"This fair and principled measure now has support from business, trade unions, across the political spectrum and most importantly, the overwhelming majority of the public.

"Conservative MPs must now join the British people in calling for a windfall tax - or explain why they continue to oppose measures that would ease the cost-of-living crisis."

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