In search of solutions to a crisis over energy prices and the cost of living more broadly, Rishi Sunak said an unexpected tax, as Labor argues, was possible if energy companies did not properly reinvest large profits. Asked if he supported the chancellor’s idea, Kwarteng told Sky News: “I have never been a supporter of unexpected taxes. “I am very clear on this in public, I think it discourages investment and the reason we want to invest is because they create jobs, they create wealth and they also offer us energy security.” Sunak told Mumsnet on Wednesday that he was also concerned that an unexpected tax could halt investment in new oil and gas fields, but added: “If we do not see such investments and companies are not going to make these investments in our country and energy security, then of course this is something I would look at and nothing is ever off the table in these things “. Asked by Sky about Sunak’s views, Quarteng said: “He is the Chancellor of the Exchequer, he is in charge of tax policy. “From my point of view, I want to see investments in the North Sea.” Asked if he disagreed with Sunak, Quarteng said: “My view is that, and I have said it many times in public, an unexpected tax will act as a disincentive to investment and we want to see investment.” Sources in the finance ministry and the operations department rejected the idea of the split, saying both ministers shared the view that they were not seeking an unexpected tax, but did not rule it out if energy companies did not provide sufficient new investment. In a letter to the oil and gas companies, which also circulated in the media, Kwarteng called on them to invest in new domestic energy production as a way to help reduce bills. “In return for the continued support of the British Government in this area, the Prime Minister, the Chancellor and I want to see a very clear plan by the oil and gas industry to reinvest profits in the North Sea and, above all, in the clean energy technologies of the future. “, He wrote. Subscribe to the First Edition, our free daily newsletter – every morning at 7 p.m. BST The Labor Party, which has argued that a one-off, 12-month unexpected contribution would contribute 1, 1.2 billion to wider efforts to cut energy bills, has dismissed the letter as ineffective. Ed Miliband, the shadow secretary for climate change, said: “Kwasi Kwarteng’s letter is not worth the paper written for the millions of families facing the cost of living crisis. “Families want action to deal with the crisis of accounts, not an empty, offensive piece of political turnaround.”
