BARROW'S Member of Parliament has reacted to the Government's decision to vote down the controversial Windfall Tax. 

The proposed tax, that was put forward by Labour, was a bid to have a tax on oil and gas giants, which Labour claimed could save households £600.

Concerns were raised that increased taxation would lead to businesses putting up prices which would increase pressure on lower income families. 


The tax has drawn comparisons to France's 2012 75% tax rate on those earning €1m which had to be dropped after the country lost high scale investment from businesses.

MP Simon Fell said: "It was claimed yesterday that a windfall tax would raise £2bn.

"That figure is dwarfed by the £22bn that has already been made available by the government to offer to support to people who need it and are affected by rising energy costs.

"But even that figure is in dispute - claims were made that this would give a dividend of almost £600 per household, but the reality is it would likely deliver around £65 instead.

"I’m not against the principle of a windfall tax, especially when energy companies are making super-normal profits.

"Indeed, this was exactly the point that the Chancellor made when he opened the debate.

"But we are also asking these same companies to invest heavily in the UK at present, delivering massive projects like new nuclear and offshore wind.

"So there is a careful balance to be struck and we don’t want to chill that investment. 

"When France acted against its energy companies it almost halved the share price overnight, hitting state pension funds and chilling investment in one move.

"I’m keen to get that balance right, rather than support a knee jerk reaction to the challenges we face."

"I’m going to continue to speak to Ministers in BEIS and Treasury on this over the coming weeks to ensure that we get support for families but are also able to build out energy capacity for the future."