Ed Miliband was quizzed during the morning broadcast round.
Ed Miliband clashed with a presenter on Sky News this morning (Image: Getty)
Energy Secretary Ed Miliband has insisted tax hikes will not impact customer bills, leading to a tense interview on Sky News. The Labour politician clashed with presenter Wilfred Frost after arguing that taxing energy companies at 78%, rather than the usual corporate tax rate of 25%, would not drive up consumer bills.
Miliband, who was appointed as Energy Secretary in July 2024, could not explain why the Government doesn’t tax every business at 78% to raise more money without impacting prices. He insisted throughout the interview that the price of oil and gas was based on the international market. When questioned on whether taxes also make an impact, Milliband argued: “In relation to oil and gas, they don’t.”
So what do you think? Vote in our poll and join the debate in the comments section. Can’t see the poll below? Click here.
Addressing price hikes following the Russian invasion of Ukraine, Miliband reasoned: “Our prices went through the roof even though we imported a very small amount from Russia, because whether the gas is coming from the North Sea or internationally, it was priced on the international market.
“We’re in the grip of fossil fuel markets controlled by others… that wasn’t about the UK tax rate”.
However, Frost countered: “That’s a legitimate point – the floating price of commodities is legitimate, but another point for why this country has unbelievably, high energy prices is that we tax our energy.”
“Put commodities aside, if you increase taxes on supermarkets to 78%, what would happen to the prices of food?”
Frost laughed out loud when Miliband said it depends on whether it’s a domestic market, exclaiming: “It doesn’t depend on that! This is an unquestionable factor about economics. You can’t flatly deny my point!”
Don’t miss…
Ed Miliband plots new electricity plan which will see certain households pay mor [LATEST]
Blow to Miliband’s net zero plans as slave-linked Chinese solar panels face ban [REVEAL]
Russia economy in meltdown as energy exports dealt huge blow
Trending
Miliband continued to insist taxes would not make any difference to bills, to which Frost quipped: “Yes it would!”
The Labour politician concluded: “We’ll have to agree to disagree about this. I’m convinced of my argument.”
Ed Miliband has also confirmed government is considering potential changes to the energy market, which could involve “zonal pricing and reformed national pricing”.
Under the scheme, costs would match local supply and demand, which, in practice, could lead to lower bills in areas with high wind generation like Scotland, rather than urban areas like households in the South.
