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Gordon Brown has intervened in the row over soaring fuel costs by proposing a £500 million carbon tax on Britain's biggest energy companies to help families with gas and electricity bills .
Under proposals to be put to energy companies, the money would come from permits allowing them to offset their carbon emissions over the next five years.
Last week Centrica, parent company of British Gas, announced a 35 per cent price rise within days of posting £992 million profits for the first half of this year.
The Prime Minister has come under pressure from Cabinet colleagues for the Government to impose a windfall tax, but No 10 and the Treasury are concerned that a scheme modelled on the 1997 tax would alienate businesses and the costs would be passed on to consumers.
There are significant tensions over the issue in Cabinet, with John Hutton, the Business Secretary, leading the campaign against any attempt to “punish” energy companies.
They are keen to speed up the introduction of the permits and may not oppose the moves so long as the extra tax money is ringfenced to help the poor with fuel bills.
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It is all very well saying the carbon tax should help alleviate rising gas and electricity bills, but what about domestic oil bills which have risen over 400% in six years, and we cannot change to gas!!! Gordon Brown should remember his roots.
COLIN LATHROPE, CRAIGELLACHIE, Banffshire
Perhaps at some point people will begin to question the efficacy of "free market capitalism" which we have been brainwashed into believing is the only way.
denis, belfast, uk
Privatising the utilities was one of the biggest con-tricks of all time or the actions of buffoons, and now the slaves to the state are all paying for it. If we had a real Labour government, all of the essential services would have been renationalised. The state has become the enemy of the honest citizen. I would put most of these villains, who call themselves politicians, in jail.
Les, Surrey, England
Utilities should never have been privatised, they are essentials not luxuries. Why should we pay more so the French pay less? Once again i hear him giving lump sums to child benefit claimants - when am i going to hear of help for the disabled, we get nothing year in year out, when is it our turn?
Zordana, Bucks, England
He should demand a higher rate of investment and increase our gas storage problem.
As usual he is going for the only two things he knows - taxing and spending.
Listen to us Brown - call an election
simon, nottingham, UK
Ah yes, a Carbon tax, and it'll benafit us... get a grip Brown.
It just goes to show there elitist mind set to think this kind of thing will work on "commoners".
They think we are just there slaves. We work for them, they tell us how much you can keep out of your wages and how much they want
Andrew Towell, Hartlepool, England, UK
Yep I agree, a thoughtless knee jerk reaction to get him back in favour with the voters. Not going to work!
Give me a grant to go totally off grid instead Brown One! I'll supply my own energy, not one that is taxed to the hilt and supplies shareholders with large windfall bonuses.
Lyn, London,
Instead of buying these overpriced permits, why not buy the EU carbon trading rights instead?
This is just a knee jerk from Brown, and will disapppear fwithout trace in a couple of days.
malcolm, London,
Why do some posts rush to grab the wrong end of the stick in their haste to climb aboard the bash Gordon charabanc? This is not about petrol and upstream oil & gas companies its about electricity and gas supply utilities who have enjoyed massive profits in the face of oil and gas price increases.
Rohan, Solihull, UK
Carbon Tax ? Yet another " Brown Blunder" in the making.
The sheer ignorance of the man. Petrol accounts for a small proportion of the overall profits.Most profits are made from upline products. A further tax will only increase prices.
This is a substitute for the 2p increase .
V Cooper, Somerset, UK
WINDFALL PROFITS.....bull,
nick flaker, ponca city, u s a