Ed Miliband has unveiled radical plans to reward companies which invest – paving the way for a future Labour government to offer tax breaks to some North Sea oil and gas firms.
The party’s leader vowed yesterday to revolutionise the tax and regulatory system in the UK to penalise “predator” businesses and celebrate “producers”.
Senior members of Labour’s shadow cabinet told the Press and Journal last night the proposals could be “hugely positive” for the north-east – as the energy industry boasts “shining examples” of responsible companies.
The remarks were made amid ongoing anger in the region at the Conservative-Liberal Democrat coalition government’s decision to launch a £10billion tax raid on the oil and gas sector.
Mr Miliband revealed his new focus on rewarding people and businesses who contribute to society.
He said: “We must learn the lesson that growth is built on sand if it comes from our predators and not our producers. We need the most competitive tax and regulatory environment we can for British business.
“When I am prime minister, how we tax, what government buys, how we regulate and what we celebrate will be in the service of Britain’s producers.”
Douglas Alexander, a key colleague of the Labour leader, suggested last night that the plans could provide a major boost to the oil and gas industry. The shadow foreign secretary said: “Ed Miliband is right to say we need to reward fairness and responsibility at the top and I think that approach could be hugely positive for the north-east and Scotland.
“There are many shining examples of good, responsible companies in the North Sea energy industry, and we have to be in a position to compete internationally to attract new green jobs in renewables to the north-east.”
Shadow energy secretary Meg Hillier said: “There is real potential here for companies in the north-east to be rewarded for corporate responsibility. The future for the north-east is undeniably bright.”
In his conference speech, Mr Miliband singled out troubled care home provider Southern Cross Healthcare as an example of a firm which had been involved in “stripping assets for a quick buck”, and had not displayed the “values of British business”.
Mr Alexander, MP for Paisley and Renfrewshire South, contrasted such firms which “rip off” consumers with some of the long-term investment decisions that have been made in the North Sea in recent years”.
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