Government intervention and a windfall tax on oild and gas companies. These are some of the measures two Bristol companies would like to see in Rishi Sunak's Spring Statement tomorrow (Wednesday, March 23).
The Chancellor is to deliver his Spring Statement 2022 tomorrow, but it is feared it will bring grim news for millions of struggling families. This comes as Energy bills, National Insurance and inflation are all surging in April, as reportedby the Mirror.
Just last weekend, financial expert Martin Lewis called on the Government to offer additional help for struggling households, citing the need for "political intervention" as he said he was "out of tools" to help households. And two Bristol firms have now shared their thoughts on what they would like to see Mr Sunak announce.
Read more: Martin Lewis 'out of tools' as energy bills rise by £1,300
Graham Cox, founder of the Bristol-based Self-Employed Mortgage Hub: "There are three things the Chancellor should do. First, implement a windfall tax on the North Sea oil and gas companies. They are making enormous profits off the back of soaring energy prices, which could cost the average consumer £3,000 a year by late 2022.
"In these extraordinary times, when people are having to choose between heating or eating, a windfall tax is the obvious and right thing to do. Unsurprisingly, Rishi Sunak seems ideologically averse to the idea, but ideology isn't going to keep people warm and fed next winter.
"Second, ban the purchase of UK properties by foreign investors unless they plan to reside in the UK full-time. And third, make it prohibitively expensive through higher stamp duty and/or capital gains tax to buy a second property or holiday home. It needs to be discouraged as it prices out local residents from having the chance to buy."
Industry regulator Ofgem confirmed that the energy price cap would rise to nearly £2,000 for the year, which means the average bill will rise by £693 per UK household. The sanctions on Russia following Vladimir Putin's invasion of Ukraine are also expected to lead to further hikes later this year, according to experts and as reported by the Express.
The energy price cap sets a limit on the maximum amount gas and electricity providers can charge consumers for each unit of energy. This upcoming hike in bills will represent an increase of around 54 percent at a time when inflation is skyrocketing also.
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Simon Peacock, head of JLL's Bristol office, a professional services firm that specializes in real estate and investment management, said that the rising energy costs need to be addressed. He said: "The Spring Statement is always billed as a refinement rather than revolution, but intervention is clearly needed to address the rising energy costs that are impacting businesses.
"An extended period of inflation, combined with increased borrowing costs, will almost certainly dampen the ability of developers and occupiers to make critical investment in retrofitting their buildings to meet better environmental performance standards. Our research points to a significant task for Bristol to achieve its 2030 net zero target, which will become all the more difficult if businesses are forced to retrench so soon after a period of post-Covid recovery."
