Labour 'in favour' of windfall energy tax

23/09/2008

The government has been put under pressure to impose a windfall tax on energy firms.

A motion on the extra levy, backed by trade unions, was passed at the Labour party's conference.

While the vote won't mean that the windfall tax will become party policy, it nevertheless shows how strongly many party members feel about the issue.

Windfall taxes on gas and electricity providers - who have been accused by some campaigners of profiteering at the expense of low-income households - have already been explicitly ruled out by ministers.

The government's £910 million autumn energy plan includes extra funds for installing insulation in homes, rather than a direct tax on providers.

Commenting on the vote Gordon Lishman, director-general at charity Age Concern, said: "Much more action needs to be taken by the government to help those struggling to afford rapidly rising energy bills.

"The government must recognise that its recent raft of measures are woefully inadequate to the needs of the poorest households and that more investment is needed by both it and energy firms to tackle fuel poverty."

Tags; Current UK Economy, Young Family Finances, Retirement Money Problems, Credit Card Lifestyle, Recent Graduate Debt,

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