Labour would implement windfall tax on North Sea oil to tackle cost of living crisis

Speaking to Sky News’ “Trevor Phillips on Sunday”, shadow Chancellor Rachel Reeves proposed a one-off tax on North Sea oil to help tackle the looming cost of living crisis. She said the tax would be used because producers are set to make “record profits” this year.

Citing previous chancellors including George Osborne and Gordon Brown who have used this device before, Ms Reeves denied that the move would decimate the energy sector. “I want to tax fairly and spend wisely”, she said.

The money would then be used to “reduce bills for ordinary people who are struggling so much at the moment”.

Ms Reeves accused the government of “dither and delay and incompetence” on the economy, adding that the UK has been “uniquely exposed” because of government action.