Liz Trass brushed aside the growing demands for a tax on energy companies, even though she acknowledged that the UK is in a “very very difficult economic situation”.
Foreign Secretary in an interview with Sky News correspondent Kay Burley shortly thereafter showed new figures inflation reached a four-decade high of 9%, acknowledged that the rise in the cost of living was “extremely high”.
But she warned that a one-time Labor-like tax for companies like BP and Shell, which have seen profits rise as oil and gas prices rise, could hold back investment.
Labor said the government was “refusing to take the necessary measures” to help people affected by rising inflation.
Ms. Rabbit said: “We are in a very difficult economic situation. We are facing very serious global headwinds. Inflation is extremely high.”
“What we are doing is working to increase the growth of our economy, attracting investment to the United Kingdom to counter this global headwind.
“But it’s certainly very difficult for people all over Britain and really all over the world.”
Asked about the idea of an income tax, she said the UK had managed to keep unemployment low due to success in attracting investment.
“The problem with the surplus tax is that it makes it difficult to attract future investments to our country, so the introduction of such a tax is worth it.
“I believe that lower taxes – the best way to attract more investment – to attract companies to the country that can create these high-paying jobs, and that’s what we need to withstand this global headwind.”
Disputing the recent acknowledgment by BP chief Bernard Looney that the unexpected income tax would not stop her investment plans, she said: “Well, then he can do more if he gets more of the profits that have been made during this period.”
Shadow Labor Chancellor Rachel Reeves told Sky News: “Inflation has reached a 40-year high, but the government still … refuses to take the necessary measures to help some people.”
Ms. Reeves noted “retirees who don’t turn on heating when they need to because they’re worried about bills, moms who skip meals to ensure their children get three meals a day.”
“We don’t have to put up with this in 2022. The government needs to do much more. “
In a parliamentary vote Tuesday, the shadow chancellor criticized the Tories for rejecting Labor’s plan to pay a tax that would be used to cut consumers’ gas and electricity bills.
However, former Conservative Minister Robert Halfon and Mel Stride, chairman of the Treasury Electoral Committee, both expressed support for the policy.