THE CHANCELLOR has been challenged by the SNP to use tax from oil and gas firms to shore up struggling families.
Stephen Flynn, the party’s business, energy and industrial strategy spokesman, has written to Rishi Sunak saying there is a “golden opportunity” amidst the ongoing fuel crisis.
The cost of wholesale gas has risen by 250 per cent since January, in part due to a colder winter, less wind and an increase in demand from Asia.
Mr Flynn argues that as the price rises will see oil and gas firms’ profits soar, and will generate more in tax receipts for the Treasury.
He said that this additional cash should be passed on to help those in most need, as well as being spent on climate change action.
In his letter sent today, Mr Flynn wrote: “Oil and gas firms will be making extraordinary profits as a result of this crisis and the increased tax receipts received to the Treasury must be specifically utilised to protect consumers who now face enormous bills and to invest in our net zero future.”
He added: “Governments across Europe are considering or are taking similar actions to deliver support to their citizens and you have a moral duty to do the same. The gas crisis makes clear that direct government action is needed immediately to avoid a new winter of discontent.
“I urge you to act now and use tax receipts from energy companies which are profiting from this crisis to protect consumers and invest in a net zero future.”
He later said: “While people across Scotland are facing enormous rises in their energy bills, the Treasury will be raking in substantial tax receipts from the inflated price of gas.
"Rather than hoovering up these tax receipts in the Treasury, the Chancellor must act to support households being wacked by colossal rises in utility bills - if he doesn't, then he will be dealing with a new winter of discontent.
"We can use these tax receipts to invest in our net zero future too, this is a golden opportunity to harness this increased Treasury revenue to finance a sustainable future for our energy sector and our energy security.
"The time to act is now and the Tories have no time to dither and delay - it's time to step up the plate and perform their moral duty to families the length and breadth of these islands."
The UK Government has been contacted for comment.
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