Cost Of Living Crisis: Sussex Council Leader Rejects Call To Back Windfall Tax On Fuel Companies

The leader of East Sussex County Council has declined calls to back a windfall tax on oil and gas companies.

At a full council meeting on Tuesday (May 10), Green Party co-leader Georgia Taylor called on Conservative council leader Keith Glazier to send a letter to the government on behalf of ESCC setting out its support for the move. 

She asked for the letter to also set out the council’s support for an end to government subsidies for oil and gas companies.

Cllr Taylor said:

“The two IPCC reports released this year have provided some alarming evidence of the mounting dangers of global heating. The chair of the report committee stated ‘climate change is a grave and mounting threat to wellbeing and health of the planet.’

“According to the International Energy Agency, energy is responsible for 75 per cent of green house gas emissions, the main cause of global heating. In addition to this terrible situation, we have an even more immediate crisis with the cost of living increase likely to push millions of households into poverty, especially with the cost of household energy increasing dramatically. 

“And yet, because of these price increases, the UK oil and gas industry is set to make a windfall profit of £11.6bn. In addition to that oil and gas companies receive £3.4bn per year in subsidies from UK taxpayers.”

Cllr Glazier declined the call, however, arguing that there was no indication that the proposals were supported by the council as a whole.

He said:

“I don’t think that is a question for me as leader, I think that is a question for the council. I have no indication that we would have a total commitment to send a letter to anybody stressing the points you have raised.

“I think we all individually continue to lobby our groups and parties we support. Individually I think we will do that. I can see no mechanism that this council could have to fulfil the wish that you have.”

Cllr Taylor took issue with this response, arguing that Cllr Glazier had previously written letters on behalf of the council on other matters (such as its recent letter of support for the UK accepting refugees from Ukraine).

She said:

“How is it we can do it with some pressing issues, but with other pressing issues we can’t. You might find that everyone here would sign up to a letter of such a nature, because it is so important and pressing at this time.”

Cllr Glazier replied:

“I know what my group think and there are mixed feelings within the group. I know that there wouldn’t be a consensus there and so on behalf of my group, I couldn’t be pushing it forward.

“The letters we’ve sent have absolute sign up and we would have gained that by having conversations with leaders around the room prior to a council meeting to establish what it is you want to deliver instead of just a grandstanding moment for the county council. There are a lot of opportunities here.”

Story by Huw Oxburgh

--------------------

Meanwhile, campaign group Divest East Sussex hit back at the decision with a demonstration outside county hall on Tuesday (May 10). 

They staged a mock stand-off between ‘ESCC’ and demonstrators, with ESCC using a giant shield labelled ‘East Sussex Pension Fund’ to defend the oil, coal and gas industries (also played by costumed actors).



In a press release they cited the business secretary, Kwasi Kwarteng's rejection of calls for a windfall tax made in March, where he argued that ‘such a move would penalise anyone with a pension invested in those companies’.

They also mentioned recent analysis by Greenpeace, that suggested at a windfall tax on this £11.6 billion of additional profits ‘could provide six million households experiencing fuel poverty with one off payments of £1,100 pounds each. This would leave £5 billion to invest in the nationwide roll out of heat pumps, insulation and other energy efficiency measures – fulfilling an outstanding pledge from the 2019 Conservative manifesto – as well as increasing investment in renewable energy infrastructure in order to increase energy capacity.’

A spokesperson for Divest East Sussex said:

"Because of the lack of support for low income families, the cost of living crisis looks set to push 1.3 million people into absolute poverty next year. A windfall tax on the UK oil & gas industry's projected £11.6bn of wartime windfall profits could prevent this and help to turbocharge the insulation of the UK's millions of draughty homes.

"It's time for ESCC to stop shielding Big Oil from such a tax and to finally make a public commitment to fully divest from these rogue companies that are trashing our planet."