Brown ally joins calls for windfall tax

Geoffrey Robertson

Thursday, 14, Aug 2008 12:00

One of Gordon Brown's closest allies has joined calls for a windfall tax on energy companies.

Former paymaster general Geoffrey Robinson appears on a petition of over 50 Labour MPs calling for energy and oil company profits to be directed towards lower income families struggling to keep their homes warm during the winter.

The petition, by centre-left pressure group Compass, is also signed by Stephen Twigg, former education minister, and Tony Lloyd, parliamentary Labour party chairman.

Alistair Darling was said to be considering a windfall tax earlier this summer, but appears to have decided against it, saying there are principled and practical objections.

But some strategists are urging Mr Brown and Mr Darling to adopt the policy as a way of galvanising left-wing support both inside and outside the Labour party, and as an eye-catching policy during tough economic times.

"The government has to take the issue seriously now," said Neal Lawson, Compass chairman.

"It is becoming a litmus test of Brown's ability to show leadership in the country and reconnect with a demoralised party."

Britain's main energy providers have seen their profits soar to £3 billion this year, from £557 million five years ago.