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Energy companies roll out new argument against windfall tax
04 September, 2008Energy companies have delivered another, potentially fatal, blow to the government over its attempts to secure some of the £1 billion in funding aimed for the poorest households in Britain.
Energy companies have delivered another, potentially fatal, blow to the government over its attempts to secure some of the £1 billion in funding aimed for the poorest households in Britain.
Following lengthy talks that have already forced prime minister Gordon Brown to postpone an announcement regarding help to the poor, the energy companies have now warned the government that being made to pay a windfall tax could mean that they withdraw from funding a £10 billion investment in renewable energy.
The Association of Electricity Suppliers spokeswoman, Laura Schmidt, said yesterday: "A windfall tax would be a very bad way of addressing the fuel poverty issue, because it is a very short-term measure which risks really damaging the relationship between government and business.
"[It]…would also send a bad signal to companies that are contemplating about £100bn investment in the energy industry in the UK."
Such talk makes for a compelling argument against government intervention, but with Mr Brown's ratings far lower than Conservative leader David Cameron's, and with 130 backbenchers agreeing with a windfall tax, there is a strong likelihood the levy will go through.
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.