Government windfall tax U-turn inevitable, says Keir Starmer

Boris Johnson has been urged by Labour to stop dithering and impose a one-off windfall tax on energy giants' profits to tackle the cost of living crisis.

Sir Keir Starmer said that every day the PM delays his "inevitable U-turn" he was "choosing to let people struggle when they don't need to".

The PM accused the Labour leader of having a "lust to raise taxes".

But he did not rule out a windfall tax, telling MPs he would "look at all sensible measures" to help families.

The pair clashed at Prime Minister's Questions as UK inflation rose to 9%, the highest rate for 40 years, on the back of soaring energy bills.

Chancellor Rishi Sunak has repeatedly hinted at the introduction of a one-off windfall tax on oil and gas firms, who have seen a sharp rise in profits since Russia invaded Ukraine.

But there have been mixed signals from other members of the cabinet over the policy, which is backed by Labour, the SNP and Liberal Democrats.

At PMQs, Sir Keir said "a one-off tax on huge oil and tax profits would raise billions of pounds, cutting energy bills across the country".

He accused Mr Johnson of doing the "hokey-cokey", ruling it out one minute and backing it the next, adding: "Whilst he dithers British households are slapped with an extra £53m on their energy bills every single day.

"Meanwhile, every single day North Sea oil and gas giants rake in £32m in unexpected profits.

"Doesn't he see that every single day he delays his inevitable U-turn - he's going to do it - he's choosing to let people struggle when they don't need to."

During the leaders' exchanges, one Labour frontbencher even taunted Boris Johnson, spelling out the letter 'U' with their finger, our political correspondent David Wallace Lockhart reports.

Mr Johnson said: "We're already helping people with the cost of living in any way that we can."

He added: "In July, we will have the biggest tax cut for 10 years, £330 cut on average for 30 million people who are paying National Insurance contributions and the reason we can do that is because we have a strong and robust economy.

"I'm going to look at all measures in future to support, of course I am, but the only reason we can do that, the only reason our companies are in such robust health is because of the decisions that this government has taken."

But he also stressed that the Conservatives were "not in principle in favour of higher taxation", in contrast to what he said was Labour's "lust to raise taxes".

"We don't relish it, we don't want to do it, of course we don't want to do it, we believe in jobs and we believe in investment and we believe in growth," he added.