SCOTTISH Labour’s call for a windfall tax on oil and gas company profits amid the cost of living crisis did not pass in Holyrood.
Although the taxation of fossil fuel firms is reserved to Westminster, Labour included the policy - first touted by Shadow chancellor Rachel Reeves in January - in a motion on an opposition day debate on the cost of living crisis.
The motion passed but with an amendment brought by the Minister for Just Transition, Employment and Fair Work Richard Lochhead which removed the key line about oil and gas.
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Parts of the failed motion called for a freeze on rail and water charges and for the UK Government to cut VAT on home energy bills for 12 months.
The motion originally read: “As to provide extra targeted support to those who need it most, including pensioners and low earners, by expanding and increasing the Warm Home Discount, giving those households an additional £400 off energy bills, and agrees that this should be paid for by a one-off windfall tax on increased oil and gas profits.”
However, Lochhead’s amendment began by stating that the powers are reserved.
Richard Lochhead's amendment passed but erased a key phrase about oil and gas from the original motion
Setting out what the Scottish Government policies, including free bus travel for under-22s and doubling the Scottish Child payment, will do to offset the crisis the amendment added: “Agrees that further power in the hands of the Parliament would enable it to address the cost of living, energy prices, and minimum wage levels.”
Lochhead’s amendment passed with 68 votes for yes and 53 for no, while Baillie’s motion, as amended, passed with 69 votes for and 52 against.
Scottish Labour MSPs - 21 out of 22 - voted against their own motion with the added amendment.
The timely debate came as energy regulator Ofgem increased the price cap to a record £1971 per household as gas prices rocket. The price hike will affect around 1.5 million Scottish households, or half the population.
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Moving the motion, Deputy Scottish Labour leader Baillie said: “Let me be clear, I expect both the Scottish and UK governments to set aside their customary differences and work together to protect people from the crisis.
“The Scottish Government have the power to help. Whether it's putting more income in people's pockets or reviewing some of the charges they are responsible for doing nothing is not an option.
“The SNP amendment is therefore genuinely disappointing, simply saying how much they are already doing is breathtakingly complacent when people are facing a doubling of their energy bills, and a huge cost of living crisis.”
In response, Lochhead said that energy market powers are reserved, and that Michael Matheson, Cabinet Secretary for Net Zero, and Shona Robison, Cabinet Secretary for Social Justice, had both written to the UK Government calling for action.
Scots are facing high energy bills as the price cap was raised
He continued; “And of course, we await a response from the UK Government over and above what's been said today.
“The tax levers to help hard pressed households are also reserved to the UK Government. These include the power to vary VAT rates on consumer bills in the short term.
“And I'm sorry to hear that the UK Government appear to have ruled that out today again, despite the fact that Boris Johnson said Brexit would give him the opportunity to cut VAT rates.”
Meanwhile, Scottish Greens Minister Patrick Harvie told MSPs that the cost of living crisis will undoubtedly have a “profound” effect on people in Scotland.
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He added: “There is a great deal that we also need the UK government to do. We have a clear focus on making sure that we will take every action we can with devolved powers and the just transition away from fossil fuels has to be critical.
"This Government is committed to taking that action with every lever that we have at our disposal.”
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