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Unions pushing for windfall tax | Unions pushing for windfall tax |
(about 5 hours later) | |
Trade unions are urging the government to impose windfall taxes on "greedy" energy firms to help households struggling to pay fuel bills. | Trade unions are urging the government to impose windfall taxes on "greedy" energy firms to help households struggling to pay fuel bills. |
The TUC's annual conference in Brighton backed a motion saying the government needs a "coherent" policy. | |
It criticises the "big six" energy firms for making £1.6bn last year, while raising prices by 42% this year. | It criticises the "big six" energy firms for making £1.6bn last year, while raising prices by 42% this year. |
The vote came shortly before Chancellor Alistair Darling was due to give his speech to delegates. | |
'Phony competition' | 'Phony competition' |
The motion, proposed by the GMB union and seconded by the National Union of Mineworkers, claims that the rising cost of living is causing many people to make a choice between "food or fuel". | The motion, proposed by the GMB union and seconded by the National Union of Mineworkers, claims that the rising cost of living is causing many people to make a choice between "food or fuel". |
It "condemns the actions of these supplies, and the phony competition between the energy companies". | It "condemns the actions of these supplies, and the phony competition between the energy companies". |
The motion also criticises the regulator Ofgem as "inadequate" and accuses it of "not standing up for consumers". | The motion also criticises the regulator Ofgem as "inadequate" and accuses it of "not standing up for consumers". |
Tony Woodley, joint general secretary of the Unite union, told delegates: "Time and time again our government rolls over in front of these vested interests." | |
He added: "Gordon, you've written a book about courage. Take the words out of the page... bring in a windfall tax for our people now." | |
The demand for a windfall tax on energy companies' profits has also received indications of support from an estimated 100 Labour MPs. | The demand for a windfall tax on energy companies' profits has also received indications of support from an estimated 100 Labour MPs. |
Mr Darling has previously said he has "serious reservations" about the idea. | Mr Darling has previously said he has "serious reservations" about the idea. |
The government appears to have ruled out a windfall tax for the moment, but wants energy firms to contribute towards a scheme to improve home insulation, cutting wastage and reducing bills. | The government appears to have ruled out a windfall tax for the moment, but wants energy firms to contribute towards a scheme to improve home insulation, cutting wastage and reducing bills. |
An announcement is expected this week. | An announcement is expected this week. |
On Monday the TUC conference voted overwhelmingly for a series of national demonstrations against the government's pay policy, which calls for annual increases to be limited to 2% a year. | On Monday the TUC conference voted overwhelmingly for a series of national demonstrations against the government's pay policy, which calls for annual increases to be limited to 2% a year. |
Unions argue that the real rate of inflation, pushed up by increasing fuel and food costs, is nearer 5%. | Unions argue that the real rate of inflation, pushed up by increasing fuel and food costs, is nearer 5%. |
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