Tax On Oil Profits Won't Make A Dent In Inflation Crisis

WITH millions of people struggling to pay their bills, what a tempting target the oil companies look, especially after BP's CEO Bernard Looney foolishly described his company live on air as a "cash machine".

- Ross Clark

One way BP could spend some of its profits this year is on media training for its senior figures.

Slap BP, Shell and others with a windfall tax, Labour has proposed, and the Government could raise £2billion or more to help low income families heat their homes. What's more, supporters of a windfall tax can point to comments made by Britain's large oil companies that it wouldn't affect their investment plans this year.

But we should be careful what we wish for. A windfall tax won't make a dent on Britain's inflation problems, but it would hit the pensions and savings of millions of ordinary people and worse it would send a powerful message to international corporations that Britain is not a reliable place to do business.

It is all very well looking at BP and Shell's profits this year and saying they have had a bumper year thanks to "unexpected" profits as a result of high oil and gas prices. But two years ago they were struck by unexpected losses as the pandemic slashed demand for oil.

THESE weren't any old In 2020, BP lost an eyewatering £22billion and Shell £25.5billion. Yet funny enough, I don't remember anyone feeling sorry for BP and Shell - or demanding the taxpayer refund their losses.