John Major has called for a windfall tax on the energy firms. The former Prime Minister called on the tax on the profits of the 6 energy firms after 3 of the big 6 raised their prices by 10% over the last couple of weeks.
Well the energy debate has begun to heat up (Yes the pun was intended)
Major is a person who doesn’t speak out much, compare to John Prescott, Major is as quiet as a mouse. So this does surprise me that he’s found his way in to the news for making a comment on energy prices and the way they’ve been treating customers.
We all expected price rises and a 3rd company has raised their prices. What does this mean fro the poor? Well either they’re going to freeze or they’re going to be heading for a food bank. I doubt the Government will allow families to freeze to death. They’ll find a way around this.
Major wants to tax the profits of the energy companies. Ok it sounds like a good idea. If you’re going to make profits you should pay a lot more money than you do. Having this one off tax might work but I’ve got two reservations about it.
1) Will the energy firms raise prices on the bills again
2) Will the energy firms leave the country
More taxes on the country means that companies might use it as a means to raise prices. They’ll be able to justify it and try to start a back lash at the Government and the way this Government is seen by some people it might actually work.
If the energy companies leave the UK we will have to start looking abroad for energy providers. Again this might cause higher prices. They’ve already threatened to leave thanks to Labours freeze on bills. This could be the straw that broke the camels back.
What ever happens it will be a nasty ending for the people of Britain.