The government of the United Kingdom should promptly introduce a windfall tax on oil and gas revenues to help citizens deal with soaring inflation, Frances O'Grady, General Secretary of the Trades Union Congress said on Wednesday
MOSCOW (Pakistan Point News / Sputnik - 18th May, 2022) The government of the United Kingdom should promptly introduce a windfall tax on oil and gas revenues to help citizens deal with soaring inflation, Frances O'Grady, General Secretary of the Trades Union Congress said on Wednesday.
According to the report published by the UK Office for National Statistics earlier in the day, the annual inflation rate in the country climbed to 9% in April from 7% a month earlier, hitting a 40-year high. In April, consumer prices rose by 2.5% after already increasing by 1.1% in March.
"Conservative MPs keep telling families there is no cost of living crisis - it's their own fault for not working more hours or having the wrong diet. But with inflation so high, the crisis is cold, hard reality," O'Grady said in a statement.
She noted that chief financial executives, the UK Chancellor of the Exchequer, in particular, should intensify efforts to raise funds for an emergency budget, which will be allocated to help "desperate families" and Britons in need.
"And we urgently need a windfall tax on oil and gas to fund energy grants for struggling households," she said.
Windfall tax is a form of one-time taxation that can be levied on companies if they make extra profits because of circumstances outside their control.
On May 4, UK Environmental Minister George Eustice suggested that Britons should choose inexpensive products instead of "brand name" goods to save up some money. Similarly, Parliamentary Under-Secretary of State for Safeguarding Rachel Maclean said that UK citizens who have been struggling due to rising costs of living should consider working harder or finding a higher paid job. Both lawmakers have been harshly criticized for failing to address inflation at the policy level, but rather offering options far cry from the realities of people's lives.
Since late February, the cost of gas on the European market has been showing strong volatility against the backdrop of Russia's military operation in Ukraine. In early March, fears of a possible Russian energy embargo in Europe, drove gas prices beyond historical highs, causing a ripple effect across economies of the West.
