Tesco chairman calls for windfall tax on energy companies to help ‘stretched’ customers | City & Business | Finance
Speaking ahead of the Queen’s Speech yesterday, John Allan was asked on BBC Radio 4’s Today programme what he wanted to see. He said: “First of all, I think action to help people cope with a very sharp increase in energy prices. “It’s harder for people to mitigate energy than it is with food, and I think there’s an overwhelming case for a windfall tax on profits from those energy producers – fed back to those most in need of help with energy prices.”
He added: “We are seeing real food poverty for the first time in a generation.” He said many of his customers are “struggling to both be able to heat their homes and feed their families.”
He had “heard shoppers saying to check-out staff, ‘stop when you get to £40 or something, I don’t want to spend a penny over that’ as opposed to having everything checked out and settling the bill.”
His remarks come after BP and Shell reported record quarterly profits.
Mr Allan said energy companies were probably “expecting” a windfall tax, adding: “I doubt they would be much fazed.”
Policing minister Kit Malthouse told the Today programme such a windfall tax could have an effect on companies’ investment in energy infrastructure.
He added: “Don’t forget they already pay double the corporation tax that others do.”
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