Millions of Households Already in Recession, Warns TUC Brown Told He Risks Alienating Public Further If Calls for Windfall Tax Ignored

Sep 08 - Herald, The; Glasgow (UK)

Gordon Brown is facing mounting anger for dithering over imposing a windfall tax on energy giants as trade union chiefs claimed millions of households in Britain were "already in recession".

Brendan Barber, leader of the TUC, ahead of his keynote speech to the annual congress on Monday, last night warned the Prime Minister he faced losing support at the next General Election unless he took action - including imposing a windfall tax and making the tax system fairer - to help people cope with the economic downturn.

Calling on ministers to "adopt a fairness agenda", he will tell delegates in Brighton:

"It's not fair that workers pay more tax on their earnings than people who earn 100 or even 1000 times more. And it's not fair that pensioners and low-income families are living in fear of a cold winter while energy companies post huge profits and speculators rake it in."

A backlash against the Prime Minister appeared to be growing yesterday after he told Scottish business leaders there would be no "short-term gimmicks or giveaways" when the UK Government unveiled its energy aid plan next week.

Whitehall had been expected to announce GBP100-per-head fuel aid following talks with the power companies but it made clear the discussions would focus instead on long-term proposals including energy efficiency measures like loft insulation. This led to claims that Mr Brown had "caved in" to the power giants - strongly denied by Hilary Benn, Westminster's Environment Secretary.

"Nobody has caved in to anybody, " he declared, adding the UK Government still expected energy companies to "make a further contribution to assist customers this winter". Indeed, No 10 made clear the option of a windfall tax was "still on the table". On Tuesday, Alistair Darling will address the TUC and take questions from delegates, minutes after they will have debated the windfall tax issue.

Tony Woodley, from Unite, said households needed "immediate respite", adding: "It cannot be right that big business is allowed to bank their obscene profits while ordinary people shiver this winter." So far 91 Labour MPs have backed a petition calling for a windfall tax.

One, David Hamilton, representing Midlothian, said he had written to the Chancellor, calling for urgent action.

Complaining that Mr Brown had given the energy companies far too long to come forward with ways of helping the poorest cope with rising power bills, he told The Herald: "If the companies are not going to do it, then the Prime Minister should do it for them."

Energywatch, the industry watchdog, yesterday accused the energy giants of "exploitating the poor" while giving the better-off the cheapest deals. It calculated those on pre-payment meters like the unemployed and long-term sick paid as much as GBP567 a year more than those able to pay online.

Meantime, a poll today adds to Mr Brown's woes, saying the only person who could cut the Conservative lead over Labour is Tony Blair, being able to narrow the current 19-point gap to 10.


Originally published by Newsquest Media Group.

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