Nicola Sturgeon: Oil and gas windfall tax could ease household cost of living crisis

Big energy companies should be paying more to help families deal with the cost of living, the first minister claimed.

Nicola Sturgeon said she is “not ideologically opposed” to calls for a windfall tax on “vast profits” in a time of financial pressure.

The SNP leader commented on the proposal in light of public “anger” at profit margins including £9.5 billion posted by BP for 2021 on Tuesday.

Shell meanwhile reported £14.3bn profits just as energy regulator Ofgem braced householders for a massive rise in their energy bills from April.

However, Ms Sturgeon also warned the “brunt” of any government response must not fall on the north-east where oil and gas jobs pay many household wages.

‘Not ideologically opposed’

The remarks in a BBC interview expose a political balancing act for the Scottish Government which includes Green party voices calling for extra tax, but also loud warnings from SNP figures about the regional impact.

Asked about a windfall tax, Ms Sturgeon said: “I’m not ideologically opposed to that. I don’t have the powers to do it.

“If the UK government comes forward with a proposal like that, I would encourage them to think about all options.

“And my only request is that we don’t want to see only the north-east of Scotland bearing the brunt of what we need to do to deal with the cost of living crisis.

“But there’s no doubt that companies making massive profits and with the broadest shoulders here should be playing a part in contributing to helping families the length and breadth of the UK.”

Earlier, Green party leader Patrick Harvie – a minister in the Scottish Government with Ms Sturgeon – repeated calls for a tax.

The first minister said the UK government should look at it but said she is considering what Holyrood can do in the Scottish budget, expected to pass on Thursday.

Ms Sturgeon added: “I’m not arguing against a windfall tax but equally I don’t want to rule out other options that might be possible to deliver additional help for families.

“I want the chancellor and the UK government to be looking at all of the options.”

UK Chancellor Rishi Sunak has so far rejected calls for any windfall on energy companies.

He claimed it sounds “superficially appealing” but would deter investment.

North-east Tory MPs David Duguid and Andrew Bowie meanwhile wrote to SNP figures in the region urging them to oppose the “dangerous and industry-wrecking tax”.