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Brown fails to secure windfall tax
05 September, 2008Gordon Brown has failed to secure £1 billion from the 'big six' energy companies in order to assist the poorest households in paying their bills this winter.
Gordon Brown has failed to secure £1 billion from the 'big six' energy companies in order to assist the poorest households in paying their bills this winter.
The prime minister has spent weeks in discussions with the highest-earning energy companies in an attempt to gain £1 billion in funding to be distributed to five million of the lowest income households in the country.
However, his speech to the CBI group which included a promise that there will be no "short-term gimmicks and giveaways" included in his rescue package signalled the death knell for talks with the energy companies.
Until now, energy companies had argued that a windfall tax aimed at helping the poor would simply put off international investors, resulting in higher prices in the future.
More recently, it was argued that if the companies were made to pay £1 billion to aid those most in need they would end funding of a £10 billion renewable energy scheme.
In a rather succinct soundbite, Mr Brown told the dinner that the government's plan was now to make homes of the poor, and indeed the whole country, "more energy-efficient, thus reducing bills not just temporarily but permanently".
The long, drawn-out sale of British Energy (BE) to EDF Energy has come to an end after the French energy firm bought BE for £12.5 billion, it has been reported.
Government hopes to have an EDF Energy-British Energy (BE) tie up within two weeks have been dubbed "optimistic" by the British nuclear company, according to a recent report.
Gordon Brown is facing the prospect of a major defeat over the government's reluctance to impose a windfall tax on energy companies, it has been reported.
The City of London has launched a campaign against Gordon Brown in order to convince him that introducing a windfall tax on energy companies should be avoided.
TaylorWimpey has reported phenomenally poor first half results for the year so far, recording a loss of £1.5 billion, it has been announced.