Daily Archives: May 1, 2022

Back in 2017, just over a year after Vote Leaves triumph in the EU referendum, Jacob Rees-Mogg declared Brexit would cut costs for millions of ordinary families. Rightly identifying that food and clothing make up a disproportionate amount of the budgets of the less well off, he said such costs could come down significantly once the UK was fully free of Brussels orbit.

What Brexit should be about is ensuring the standards of living, he said. Cheaper oranges from Florida rather than Spain could reduce peoples food costs by 20 per cent, he said. Wine from Australia and California rather than Itay could be 30 per cent cheaper, he said.

Rees-Mogg doubled down on his prediction in 2019. We could have cheaper food, clothing and footwear straight away by getting rid of the protectionist anti-trade tariffs that the EU imposes, he told the BBC.

Unfortunately, the phrases cheaper or straight away dont quite capture what happened to the prices of such basic goods since the UK-EU post-Brexit trade deal kicked in from 1 January 2021. Far from prices falling, theyve been soaring.

Earlier this month, Rees-Mogg was confronted with callers angry about the sharp rise in the cost of living. When Brenda from St Ives (sadly, not from Bristol) said on LBC that he had lied about the benefits of quitting the EU, the Minister for Brexit Opportunities replied: There is a global inflation in food prices which has nothing to do with Brexit.

A similar case was made by Boris Johnson in Tuesdays Cabinet meeting, as ministers discussed preliminary ideas for helping cut the cost of living. The PM told cabinet that the public were facing real pressures on prices because of continued Covid lockdowns in China and Putins continued crazed malevolence in Ukraine pushing up things like wheat prices.

Of course, much of the inflation is indeed a global problem. But new research by the London School of Economics (LSE) and the think tank UK in a Changing Europe suggests Brexit may well be playing a role too.

The LSE paper, which disentangled the impact of Covid and predates the war in Ukraine, identified a sudden and persistent 25 per cent fall in relative UK imports from the EU after the Brexit trade deal last year. Crucially, it also found that while UK exports overall to the EU were steady, small firms in particular saw a 30 per cent fall in export relationships to the EU.

The LSEs Thomas Sampson tells me that his working assumption is that the fixed costs and extra red tape caused by Brexit have been absorbed by bigger firms, but have led smaller businesses (for whom such costs make up a bigger proportion of their spending) to just stop exporting to the EU altogether.

Theres more. Another report, published by the think tank UK in a Changing Europe on Wednesday, found that trade barriers on imports from the EU have led to a 6% increase in food prices in the UK. Products with high EU import shares such as fresh pork, tomatoes and jams were more affected than those with low EU import shares such as tuna and exotic fruits like pineapple.

There is some good news for Brexit supporters, however. The report also suggests that there has been significant adjustment by UK businesses to the reality of trading outside the EU, with many using fellow British firms in their supply chains instead.

Its also worth saying that some ministers get increasingly irritated when asked why the UK lacks better trade and regulation deals with the EU.

Yesterday, in evidence to the Lords European Affairs Committee, the normally mild-mannered City minister John Glen was so riled by Lord Hannay that he blurted out: The point is we have left the EU. I just wonder whether you are quite reconciled to that. Hannay, a former Brussels representative for Margaret Thatcher, hit back that the suggestion he was a Remainer was improper. For the usually sedate Lords, the exchange counted as fireworks.

Yet even though we are nearly six years on from the Brexit vote, and nearly three years on from Johnson becoming PM, only now is the Government looking at ideas to help with the cost of living (including any Brexit freedoms like cutting our global tariff on things like rice, that cant be produced in the UK). The lack of urgency, even now, was confirmed when No 10 today said the domestic and economic strategy committee, tasked with this new prices-busting drive, will report back in coming weeks.

As for fuel bills, several Tories are still baffled that Rishi Sunak didnt seize on the Brexit freedom to scrap VAT on energy in his Spring Statement. One minister tells me: The VAT cut [on energy] would play perfectly into the governments narrative so well. Especially because the Treasurys energy stuff [a loan to be paid back over five years] doesnt cut it.

Still, perhaps the most telling contribution at Cabinet on Tuesday was from the Chancellor, with his warning of the importance of not feeding into further inflation rises and his emphasis that the UK is currently spending 80 billion servicing its debt.

No new spending will accompany any of these whizzo schemes to tackle rising prices. Thats why, even though the PM finally sees that childcare is a growing cost of living issue, the lame response appears to be relaxing carer-to-child ratios rather than investment in breakfast and after-school clubs that really tackle child hunger and improve attainment.

A survey by the Pregnant Then Screwed campaign group this year found that one in four parents have had to cut down on food, clothing and heating in order to afford childcare. Some 62 per cent said that the cost of childcare is now the same or more than their rent or mortgage.

The Government last year gave 24 million for breakfast clubs over the next two academic years but the funding is woefully inadequate. In a rare spending commitment, Labour is actually committed to spending 500m for universal breakfast club provision, part of Shadow Education Secretary Bridget Phillipsons 14bn Covid recovery plan.

Indeed, the admirably candid defence minister James Heappey admitted the public want more action beyond what they got in the recent mini-Budget. The cost of living is getting to such a point now where even people on good wages are struggling to make ends meet and they are looking to the Government to help them with solutions.

For many Brexit voters, quitting the EU was always meant to be a means to an end. As well as a desire to take back control of their own destiny, there was a hope that areas that had for years been neglected would finally get the attention they deserved. But overselling promises of swift cuts in costs of food and clothing and other essentials looks more unwise now than at the time.

Red tape and trade are arguably fuelling inflation, so the Government already risks the charge that Brexit is worsening the cost of living, not easing it. And with a Treasury refusing to offer any more direct help, that impression may only get worse.

See the article here:

Brexit is fuelling the cost of living crisis, and Rishi Sunak risks making it even worse - iNews

For years now people in Northern Ireland have watched some in GB fret and beard-stroke about Brexit causing a return to violence.

The comments continue to this day as if, subconsciously disappointed by the continual failure of war to reappear, saying it more often might make it more true.

Heres two bits of homegrown-in-NI advice for those with concerns:

1, That Sea Border

The sea border is the kind of symbolic playground shoving match were used to having all the time in NI.

In fact, politics here is such a mess that a portable office in Larne examining cheese or whatever is the kind of problem wed dream of calling a crisis. Bear in mind that we have a political scandal most Mondays with our morning coffee.

However, there are some major, urgent issues in NI we rarely hear mentioned in GB.

If you genuinely want to help NI, then read on to discover the elephants in the room we have lived with, with relatively little outside interest or help, for years.

2, Bigger Issues Than The Protocol

Here goes

Political collapse as a tactic: Politics in NI is a bit like a child learning to ride a bike. Except the child doesnt want to learn at all. And the bike is made of rolled up flags. Collapsing institutions and going off in a big huff are often default settings in NI. The kicker? Every time the institutions are allowed to unpause as if one more try, without major changes, will make the slightest bit of difference.

Covid restriction deniers in NI: You know those folk who convinced themselves that Covid was some kind of 5G conspiracy and took up YouTube epidemiology to avoid wearing a face mask to buy a loaf? They have influence, and significant influence too, at multiple levels of NI politics. And that means that far-right thinking and far-right identity politicshave found a proxy way into layers of government. Sound terrifying? You should try living here.

Wrecking ball Belfast: We love Belfast but it is, frankly, an absolute state. A combination of poor planning, grifty developers and bad decisions have the place in a mess. Its heartbreaking to see. Yes, the cruise ships and conferences are coming in but its like holding a house sale open day before youve done the dishes.

A mixed bag media-wise: Well simply say that NIs national broadcaster is (in my view, YMWV) allowed to pump socially-damaging tabloid hot air into this fragile environment in a way no other region would tolerate. For an extra twist no one can study or quantify this properly as guest and complaint data isnt FoIable. Oh, and at least one of our newspapers is infected with that far-right, Trumpian, Covid restriction-resistant influence mentioned above.

Lack of political leadership: Because short-termism and pantomime politics have been allowed to dominate life here, something like a border poll is going to leave whole communities without capable representation. It will be what wed call an absolute handling, and were sleepwalking towards it.

Two box social and political systems: Its an oddity of life in NI, and a hangover from a well-meaning aspect of the peace process, that government, employment and politics itself are often measured using someones background, ie childhood, religion.

Problems with this include its dismissal of societal change (example, the fastest growing political parties in NI generally arent based on constitutional view) plus there are so many occasions when it doesnt make sense in practice. These include mislabelling atheists, people who have changed religion, people whose religion doesnt match their politics and more. Essentially, it creates division just so it can measure division. Help us with this one. Please.

Public services: Like GB, our public services are close to collapse. Yes, it might be a sign of the times elsewhere too but in a place with the highest rate of mental health issues in the UK its a state of affairs that is undoubtedly costing lives.

Abortion: A new framework for lawful abortion services came into effect on 31 March 2020, but services in NI have still not changed to provide that legally-enshrined healthcare for women here in NI. Does that sound democratic to you?

Low pay as the norm: Tourism money hasnt reach many pockets in NI and probably never will. And we really, really need proper pay. In 2019 a (very) major local hotel business advertised for a qualified, experienced marketing professional at circa 16,000pa. This shameful conduct and in particular barefaced fleecing of graduates was, and is, often accepted as a norm.

Disproportionate social conservatism: NI folk are, in the main, liberal-minded but years of elections turning into de factor border polls (a trend beginning to lessen, thankfully) has gifted other agendas a free ticket into government. For example, it took until January 2020 for equal marriage to be legal. If you find yourself fretting about a politically convenient return to violence but didnt speak up on this wed be entitled to wonder what kept you so long. Oh, and a number of our local councils, some as scandal-hit as the rest of our politics, are at times a forum for views that would have being embarrassing in a 1950s gentlemans club.

This is just a sample, there are many more examples besides.

So, you can see why some extra forms needed to ship stuff to NI isnt keeping as many people awake as it might first appear. Yes, the Protocol has its problems and its politically difficult for some, but a broad failure to either bring humility to the debate by those who supported Brexit as well as a failure to separate themselves from those who would wish the border on their neighbours instead means the campaign is responsible for its own failures.

But does this constitute a genuine crisis or even return to violence? No. Weve had, and will have, worse and more tangible political problems on good day.

Still Want to Help?

There are many more issues like the above and theyre all frustrating, acceptable experiences people in NI are expected to live with as a fact of life.

Plus, they all have one thing in common: they arent the nice easy NI identity debates often allowed to shout the loudest in the news agenda.

If you definitely want to lend a hand and ameliorate the actual lives of people here, wed love more awareness around these everyday issues and many others along the same lines.

To hear them you only have to listen.

Conor Johnston @CJohnstonNI writes about subjects including culture, identity and media.

He also blogs at:

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Dear GB: Worried About Brexit and Northern Ireland? Read This - Slugger O'Toole

Over the past year, both the UK and EU have been reeling from the effects of a global fossil fuel energy crisis. Fuelled by a post-pandemic boom in demand, and aggravated by Russias invasion of Ukraine, energy bills for average households have reached record highs. To get the country out of the energy crisis, the Government has launched its Energy Security Strategy which looks to end its reliance on foreign imports of oil and gas.

However, Mr Brown, the SNP's spokesman on Energy and Climate Change, has pointed the finger at the end of the free movement of skilled workers as one of the contributing factors as well.

The MP for Kilmarnock and Loudoun noted that in order to achieve the goals set out in the Prime Ministers energy security strategy, the UK needs to have a plan in place.

He said: We need to have a supply chain that is available.

We need to make sure we have access in terms of skills, development and training.

He added that aside from rapidly training skilled workers to help in building renewable energy projects, the UK could also consider bringing in engineers from elsewhere, outside the UK".

Mr Brown said: At the moment the Government has ended the free movement of people from the EU.

We're going to have to look at emigration because emigration could also help grow the technology, which is actually better for the UK in the long run because it helps to revive the economy.

It actually grows your tax base, it grows your wealth, and therefore you can have an emigration policy that doesn't prevent that from happening.

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You continue to grow the workforce, and on the back of that, you have a training programme and a development program to continue to bring up through education and college and university sector to get them ready to move into the industry as it grows.

You're increasing your homegrown talent, but you can do that by working with imported engineers as well.

During the Brexit referendum, a majority of people in Scotland voted to remain in the EU, which is why the possibility of rejoining the bloc could play a factor in the SNPs Scottish independence bid.

Read the original post:

Energy bill fury: SNP blames BREXIT for crisis and calls to rejoin EU: 'Would help!' - Express

In the past few months, relations between the UK and the EU have been the best they have been since Brexit. Vladimir Putins assault on Ukraine reminded the two sides of the need for the worlds democracies to co-operate. It is tempting to hope that relations could continue to improve, especially now that the French presidential election is out of the way. But, as I say in the magazine this week, this is unlikely to happen.

The Northern Ireland protocol is about to return to the agenda. The EU thinks that the UK must be made to abide by what was signed, and that allowing London to wriggle out of the letter of its commitments would set a terrible precedent. The British view is that the protocol is causing a crisis for Northern Irelands devolved institutions. Londons position has also been hardened by the fact that the more consensual approach of the Foreign Office has yet to make much progress.

In the Queens Speech next month, the government will announcethat it intends to legislate to protect the Good Friday agreement in its entirety. This is code for unilaterally overriding parts of the protocol if it deems it necessary. Even some Tories think this move is cynical. They see it as an attempt by Johnson, still weakened by partygate, to remind the Brexit faithful that he is more in tune with them than any potential successor would be. The bill will also face a hard passage through parliament, given opinion in the House of Lords on the sanctity of international agreements.

But the move is, in fact, less dramatic than it looks. The people behind it emphasise that it is designed to see if the EU is prepared to budge. One of those close to the negotiations says that Maros Sefcovic the European Commission vice-president who is dealing with the Northern Ireland question just doesnt have the flexibility to address Britains problems properly because he only has the mandate for a technical, not a political, negotiation.

There are some in Whitehall who think that the strongest case for new British legislation on the protocol is if it is part of a broader effort to get the devolved institutions operating again in Northern Ireland. They argue that if Unionists issues with the protocol are addressed then the DUP will be under more pressure to go into the executive at Stormont even if, as seems likely, Sinn Fein becomes the largest party after next weeks Assembly elections. If the DUP cannot be persuaded to return to a power-sharing arrangement, then there is little chance of getting a Northern Ireland executive up and running.

The UK is adamant that it is looking for the least disruptive way to address its concerns. But the governments hope that it can act on the protocol without causing a wider upset between the UK and the EU is far-fetched.

Read more from the original source:

Miss Brexit? Another bust-up is looming - The Spectator

Portugal has started fast-tracking UK travellers at its airports, allowing Brits to avoid long queues when they enter the country.

By opening their e-gates to British travellers, Portugal is sending a message that it does not intend to prioritise EU tourists at the border, defying Brexit rules in the process.

Since 31 January 2020, new travel rules have been in place as the UK is no longer part of the European Union. The main stipulation is that British passports must be checked manually, instead of electronically, meaning longer queues.

But at this months 'World Travel and Tourist Council' summit in the Philippines, it was revealed that passport e-lanes for Brits had been set up in airports in Faro, Lisbon and Porto in mainland Portugal, and at Funchal in Madeira.

British travellers made up the majority of overseas visitors to Portugal in January and February this year, booking nearly 484,000 hotel overnights over the two months, according to the Telegraph.

The electronic gates are thought to be available to visitors from Australia, New Zealand, Singapore and Japan too.

This should provide increased accessibility for our valued British travellers, as we head into the busy summer period, Luis Araujo, the president of Turismo de Portugal, told The Telegraph.

"We're delighted to have made travel to Portugal even more seamless for those able to make the most of the new e-gates."

Travel insight expert Paul Charles added that this could lead to a domino effect with other countries.

Portugal is the first country to abandon the EUs Brexit rules of manual checks for UK citizens. Other countries that depend on UK tourists, like Spain and France, may follow suit to boost their inbound travel numbers.

The rest is here:

Portugal becomes first country to ignore Brexit and fast-track UK tourists - Euronews

Bankers have called on the UK Government to accelerate plans to cut European Union red tape and its anti-competitive tax regime if it wants London to retain its status as Europe's leading financial hub. A banker from JP Morgan, which had threatened to relocate part of its business to Luxembourg if the UK voted to leave the European Union, claimed British banks have to pay more tax than they do in other financial centres, which is anti-competitive.

Anna Marie Dunn, JP Morgan's finance chief for Europe, also suggested lenders could be deterred from having assets in the UK.

Richard Gnodde, Goldman Sachs' European head, added that British banks needed a lot of work.

Mr Gnodde, who signed a letter to the Times declaring his support for the Britain Stronger In Campaign, also announced in April 2021 that Goldman Sachs was planning to move hundreds of jobs out of London to a new office in Birmingham.

However, Ms Dunn and Mr Gnodde's comments come after corporate decision-makers could move to the Brussels bloc as the European Central Bank (ECB) enters the final phase of its desk mapping exercise.

Both Goldman Sachs and JP Morgan have also increased their EU workforces by 1,800 as a result of Brexit, according to the Telegraph.

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It has even been claimed the financial service companies have been relocating London bankers or hiring staff on the ground.

The concerns raised by bankers also come after the New Financial and the Atlantic Council found faster post-Brexit reform was key to ensuring the UK retains its illustrious crown.

The think tanks also called on the UK to focus on building greater ties with the US, which it claimed could help grow British capital markets by as much as 40 percent after helping companies raise an extra $75billion (60billion) a year.

The report said: The UK should move further and faster in reforming the framework for banking and finance and the wider ecosystem to reboot UK capital markets and improve the competitiveness of the City of London.

Faster coordinated action on taxation, regulation, and access to world-class talent is needed to ensure the UK remains well ahead of competitors.

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The UK has recently been boosted by the news that London has retained its crown as the top overall destination for financial services worldwide.

According to a report by the City of London Corporation, the capital came out on top and finished ahead of continental competitors, including Frankfurt and Paris.

The report added: London received an overall competitiveness score of 61, followed by New York (58) and Singapore (53). The rankings were rounded out with Frankfurt (45), Hong Kong (39) and Tokyo (36).

For the first time, the research includes Paris as a second European comparator centre, with a competitiveness score of 41.

The Square Mile was also only beaten by New York in a separate study published by the Z/Yen Group think tank.

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'Faster and further' Bankers urge Brexit Britain to slash red tape and taxes to boost City - Express

The Prime Minister is understood to have been given suggestions on how to ease the cost of living crisis without using taxpayer money. The latest figures put inflation at seven percent - the highest rate since 1992 - and energy bills rocketed by 693 on average at the start of the month.

The Tory leader is considering a suggestion to cut import tariffs on goods Britain is unable to produce to help counter prices on supermarket shelves.

It would help keep down the cost of food staples such as rice.

Plans given to Mr Johnson would also see Brexit powers used to reduce tariffs on refined oil products to help ease the rise in energy prices.

The Brexit blueprint, first reported by The Sun, comes as the Prime Minister looks to rally his Cabinet today.

Mr Johnson will remind his colleagues that they have a duty to do everything possible to help those struggling with current price rises.

New research from the Office of National Statistics shows that in March almost a quarter of Britons (23 percent) found it difficult or very difficult to pay household bills.

In contrast, the figure stood at 17 percent in November.

Further, 17 percent of people said they were now borrowing more money or using more credit than they did a year ago because of the rise in costs.

Mr Johnson will call on ministers and their departments to look again at how they can ease pressures on household finances.

The Prime Minister will encourage them to work at pay to find new means of helping families without the need for increased Government spending.

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Ahead of Cabinet this morning, Mr Johnson said: "With household bills and living costs rising in the face of global challenges, easing the burden on the British people and growing our economy must be a team effort across Cabinet.

"We have a strong package of financial support on offer, worth 22billion, and its up to all of us to make sure that help is reaching the hardest-hit and hard-working families across the country.

"We will continue to do all we can to support people without letting Government spending and debt spiral, whilst continuing to help Brits to find good jobs and earn more, no matter where they live."

It is thought Mr Johnson will take action in a matter of weeks to help reduce costs.

He will consider the proposals to use Brexit powers alongside other suggestions put forward by MPs and ministers.

Britons are currently suffering from the biggest fall in living standards since records began in 1956.

As well as the surge in prices, tax levels not seen since the 1940s have hit pay packets.

The Chancellor's 1.25 percent increase in national insurance took effect at the start of this month.

See original here:

Brexit masterplan to slash cost of living: Boris handed blueprint to rip up EU rules - Express

British motorists will be spared a possible 50 annual insurance hike, as the government continues to assist with cost-of-living pressures and uses post-Brexit freedoms to scrap a controversial EU law.

A bill to scrap the EUs Vnuk motor insurance law has passed through Parliament today (25 April 2022) and will go on to receive royal assent to confirm changes in the law.

The EU law could have required a wider range of vehicles beyond cars and motorbikes to have motor insurance, such as golf buggies, mobility scooters and quad bikes.

It would have extended to vehicles on private land, meaning even people with a ride-on lawnmower at home would have potentially required motor insurance. However, other insurance options are already available to people who need cover on their private land, such as farmers.

Not implementing the law will prevent an almost 2 billion hike for the countrys insurance industry, which would have translated into a potential increase in individual insurance premiums of around 50 per motorist per year.

EUs Vnuk motor insurance law scrapped

Transport Secretary Grant Shapps said:

Sacking this nonsensical EU rule will protect the pockets of hard-working British people as we continue to help ease cost of living pressures.

This is another Brexit win and Im delighted this bill has rightfully passed through Parliament, saving billions of pounds of additional insurance costs and protecting our world-leading motorsports sector.

The bill was introduced to Parliament by Peter Bone MP, who said:

I am delighted that Brexit has allowed me to promote a bill that could save the average motorist 50 per year.

I am grateful for the help that the Motor Insurers Bureau and the government provided in drafting the bill. My Motor Vehicles (Compulsory Insurance) Bill is just a small example of our Brexit dividend.

Vnuk would have also covered motorsports collisions, potentially involving vehicles from go-karting to Formula One, which would have been treated as regular road traffic incidents requiring insurance.

This could have decimated the motorsports industry due to additional insurance costs of roughly 458 million every single year. Scrapping Vnuk will therefore save the world-leading sector from potential collapse and secure hundreds of thousands of industry jobs in the process.

The CEO of The Motor Insurers Bureau (MIB), Dominic Clayden, said:

The MIB welcomes the passing of the Motor Vehicles (Compulsory Insurance) Bill. We have campaigned on this issue for a number of years and were delighted that the necessary legislation to remove the effects of Vnuk has now passed.

Motorists will no longer be faced with the additional costs relating to future accidents on private land and accidents involving a range of extra vehicles including lawnmowers and golf carts. This will save all motorists money and take us back to the commonsense approach we had before the Vnuk ruling in 2014.

In addition to the likely financial burden on British road users, the Vnuk rules are considered unnecessary as there are already insurance packages available to Brits that cover certain risks on private land.

Motor insurance will still be required for any vehicles being driven on roads or other public places. However, the removal of Vnuk means insurance for vehicles used on private land is not needed.

See more here:

Motorists to avoid annual EU price hike thanks to Brexit powers - GOV.UK

SO four years after being elected andtelling everyone that he would getBrexitdone, BoJo and his hoard of idiotic chums will still have failed to get Brexit done (Tory government drops plans for more post-Brexit import checks, thenational.scot, Apr 28).

READ MORE:Tory government drops plans for more post-Brexit import checks

No taking back control of borders because suddenly they realised that when they were told it would be expensive, it really was going to be expensive. Still trying to renegotiate the Northern Ireland protocol because yes it really did put a border in the Irish Sea, like we all said it would. All of these costs and heartache could all have been avoided by not having Brexit in the first place. But then there is no accounting for the stupidity of British Nationalist Unionists Supremacists.

Alan Thompsonvia thenational.scot

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Costs and heartache of Brexit could have been avoided by not going ahead with it - The National

The Brexit-backing Business Secretary told energy firm executives to invest more in UK projects to avoid being hit by a tax on earnings. Mr Kwarteng, who was first elected as the MP for Spelthorne in 2010, even suggested energy companies could look to pump money into the North Sea and offshore wind.

Mr Kwarteng's comments, which were reportedly made during an online meeting, came after the Chancellor of the Exchequer warned the Government had kept a windfall tax policy on the table.

Mr Sunak even signalled he would look again at a windfall tax amid cries for the Treasury to do more to tackle the cost of living crisis.

The UK Government had previously opposed the policy after it was put forward by the Labour Party.

Speaking in the House of Commons, Boris Johnson said in March: That is a classic example of what Labour got wrong during its period in office.

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The oil and gas companies are now investing 20billion in ensuring that we have long-term energy supplies.

The Prime Minister added: Everything that Labour is proposing would deter investment, meaning higher prices for consumers and households up and down the land being worse off.

Labours cost of living plan includes a windfall tax on energy companies which could bring in as much as 3billion, meaning the Oppositions measures would cost around 2billion more than the Governments proposal.

The Taxpayers' Alliance, a Westminster-based pressure group, also criticised Sir Keir Starmer's plan.

John OConnell, chief executive at the TPA, last month toldExpress.co.uk: Politicians should be wary of the siren song of windfall taxes.

Taxing energy profits will discourage investment and dissuade new players from entering the market, meaning even bigger price rises or fewer energy suppliers able to weather a future crisis.

Governments should focus on limiting these haphazard interventions and instead resolutely go for growth with a pro-enterprise, lower-tax agenda.

Despite Mr Sunak's Mumsnet suggestion that such a policy was never off the table, energy companies have insisted they have outlined plans to invest more in Brexit Britain.

A spokesperson for the oil trade body Offshore Energies UK (OEUK) said its members plan to invest 20billion in UK projects to extract oil and gas between now and 2026.

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The OEUK also claimed it estimates 60billion will be invested into offshore wind projects in Britain by the end of the decade.

Shell, an Anglo-Dutch company which gave Brexit Britain a boost after it announced it would relocate to the City of London from the Hague, said it would pump 25billion into the UK energy system over the next decade.

The company even claimed three-quarters of the investment would not be spent on the North Sea and would instead be pumped into offshore wind, hydrogen and electric vehicle infrastructure.

BP also outlined its own plan to spend twice as much on UK projects.

However, penny-pinching Brits have been hit by a cost of living crisis as inflation exceeds seven percent and energy bills increased by 693 following the price cap hike on April 1.

Read the rest here:

Kwarteng urges Shell and BP to invest in Brexit Britain after Sunak's windfall tax threat - Express