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KEIR Starmer was challenged over the Labour Party’s suggestion that windfall taxes could be used to offset the impact of growing energy bills.

Keir Starmer gets grilled on his windfall tax plans

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Keir Starmer was questioned over the Labour Party’s proposed implementation of a series of windfall taxes to respond to the ballooning costs of energy. Sir Keir insisted the proposal would move the burden from Britons to energy companies earning more than expected because of rocketing bills. But Sky News presenter Sophy Ridge pointed out two leading flaws in his proposal.

The Sky presenter said: “Is there not a concern, firstly, that this windfall tax will not necessarily be passed on to consumers, but also it could almost act as a disincentive to invest more in oil out of the North Sea at a time when we are facing big questions about our energy security?”

The Labour leader said: “These are windfall taxes. These are taxes on profits those companies did not expect to make.

“The global prince has been higher than they had anticipated, therefore, they made more profit than they anticipated.

“They used expressions like, ‘we’ve got more money than we know what to do with.’

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keir starmer labour party windfall tax energy

Keir Starmer was challenged over his proposed windfall tax (Image: SKY NEWS)

keir starmer windfall tax energy bills price

Starmer insisted a windfall tax would put the burden of extra costs on energy companies (Image: SKY NEWS)

“The argument the Government has is we won’t touch that. Instead, we’ve asked families to foot the bills by having a loan they don’t want.

“It just shows the complete difference in priorities the Labour Party who wants to look after families and the Government who’s putting even more pressure on those families.”

Britons have been hit by increasing bills due to the growing price of energy, which has been further fuelled by the ongoing war between Russia and Ukraine.

The UK has slapped a swathe of sanctions on Moscow in retaliation for the invasion, adding to the pressure on energy companies to deliver on consumers’ demands.

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Boris Johnson insisted the UK is now pursuing a path away from Russian gas as he warned the change will leave every day Britons facing extra pressure in the coming months.

But Sir Keir insisted a windfall tax would also help to offset the costs.

Giving the Makins Lecture at the Atlantic Council think tank in Washington, Liz Truss said it is time to end “strategic dependence” on hostile and authoritarian states, including a departure from using Russian energy.

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energy price cap breakdown graphic

The energy cap will rise by £693 from April (Image: EXPRESS.CO.UK)

It comes after the UK and the US on Tuesday announced they will phase out imports of Russian oil by the end of the year as part of increased sanctions on Moscow.

Experts now predict inflation could sail past the Bank of England’s 7.25 percent prediction to above 8 percent in April as the Ukraine crisis and sanctions imposed on Russia send fuel and energy prices rocketing even higher.

The Bank is under pressure to raise rates to bring inflation under control, but it is expected to be more cautious because of the uncertainty over the economic outlook.

The Bank has already hiked rates twice in the past three months, with the latest quarter-point rise to 0.5 percent in early February accompanied by warnings of more to come.

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