M&S Accuses Labour of Driving up Energy Bills
M&S has accused the Government of driving up energy bills, with CEO Stuart Machin saying taxes and levies now account for more than half of his company’s energy costs and have “nothing to do with the price of oil or gas”. The Telegraph has the story.
Stuart Machin, who runs the retail giant, said Government-imposed levies now accounted for more than half of his company’s energy costs and had “nothing to do with the price of oil or gas”.
“Over the last few years the ‘policy costs’ on our energy bill have skyrocketed,” Machin wrote on LinkedIn.
“These are the tariffs that [the Government] place on our bills to fund their policies, and have nothing to do with the price of oil or gas. They now make up over half our bill. It’s just not sustainable for UK businesses.”
The comments came as the OECD said Britain faced the biggest hit from surging oil and gas prices out of any major economy.
Inflation will surge more sharply than in other developed nations and wipe half a percentage point off UK growth this year, according to its forecast.
The UK is particularly exposed because of its heavy reliance on imported energy. Oil prices have risen from $70 per barrel a month ago to around $100 today, while natural gas prices have nearly doubled since the start of the war in Iran.
The OECD’s forecast is a blow to the Government, which before the start of the conflict in the Gulf had hoped that cost-of-living pressures would ease this year.
Rachel Reeves, the Chancellor, said the UK had not started the war but that it would have “an impact on our country”. She insisted Labour had “the right economic plan”.
Machin’s frustration with Government policy stems from green energy levies added to the wholesale price of energy.
They include: a so-called renewables obligation, under which suppliers must source a proportion of power from renewable generators or pay a penalty; a scheme that funds clean energy projects; ‘feed-in tariffs’ for small-scale generators and charges that help ensure enough power is on standby.
Beyond policy costs, businesses must also pay network charges, which fund upgrades to Britain’s power network, much of it required to meet Net Zero, and the climate change levy, a tax on non-domestic energy consumption.
A report by the Confederation of British Industry and Energy UK found British businesses were paying 60% more for gas and 70% more for electricity than they did before the energy crisis caused by Russia’s invasion of Ukraine in 2022. That is despite wholesale prices falling “substantially” in the same period.
The OECD predicted that the UK economy will grow by 0.7% this year, far below the 1.2% it forecast for the UK just three months ago. No other country in the G20 suffered a larger downgrade. France and Germany are each expected to grow by 0.8%, a downgrade from December’s projection of 1%.
Only Russia and Italy are on track for weaker growth this year.
At the same time, inflation is expected to jump back to 4%. That is double the Bank of England’s 2% target and well above the 2.5% anticipated before the war.
Worth reading in full.
To join in with the discussion please make a donation to The Daily Sceptic.
Profanity and abuse will be removed and may lead to a permanent ban.
Of course. We are required to go-to our WEF Agenda 2030 life style. And our government is trying to do this as fast as possible.
Well done that man for calling the Labour Party out. Its a pity that the MSM don’t focus on the fact that Starmer and Reeves are going through the play ritual of hand wringing that bringing down the cost of living is their key focus. Well on the basis that the higher the fuel cost at the pump etc becomes the more money thay are raking in on VAT and the other levies they have placed, so its good for the Government. If they really cared, they would lower the VAT rate during this period of unrest, such that they get only the same amount as they did before, and we the poor tax payer, will actually benefit on the cost of living,
Rayner and Starmer are rakeing the cash in at present, no wonder they don’t want us to open the oil fields.
Lucky old Welfare recipients, every day is Christmas for them with Labour.
Lord Wolfson was also pointing out that the forecourt operators are not the price profiteers. The 20% VAT income has surged at the expense on the consumers so the blame lies with the No.11 office temp.
On the other side of the coin, if they didn’t use it, they would not have to pay. Looking at the image, they seem to still have open shelves that may use more cooling than the type that Morrisons have installed in the last year or so. They have folding doors on all of the ones that need cooling.
Every time I see the ‘inflation target of 2%’ and ‘this government is determined to get inflation under control’ etc it drives me nuts – they want, need and enable inflation through all their policies. Without it they can’t keep printing money, debasing our currency, and inflating away the created debt… in fact without it, the western world collapses, because the majority will finally understand how we’ve been robbed of 99% of our actual wealth over the last 50-70 years by lying politicians of every shade…
She insisted Labour had “the right economic plan”.
The office temp is obviously quite pleased with soaring youth and private sector unemployment, soaring benefits costs and soaring public sector wages, while the economy is virtually in recession.
Her kids are around 13 and 10 so what does she care? Plenty of over- privileged suck ups in her sphere who’d be happy to provide non jobs/internships.
Yes we know. Some of us have been saying this for years. It’s nice to see the clever, business people catching up.
Well it took M&S a long time to figure out the inevitable consequences of the Climate Change Act and all that has followed.
one would have hoped business leaders were smarter and thought more than they seem to do.
Destroying UK energy security; imposing a (controlled and controllable) electricity-based energy supply requiring inter-connectors and making the UK entirely dependent on “our friends in the EU) is a long-term political project.
The Establishment is delivering the WEF’s objectives via the EU.
Correct—–Why is more of the Corporate World not abandoning this eco socialist agenda and speaking out?
Energy suppliers, big business leaders, Labour MPs and those on the right of politics, all saying the same thing! Energy prices are too high….
But in true Labour style, they can’t see it! Oh, no, we can’t have that, you greedy capitalists.,,
Anyone with more than a fiver is regarded as rich in their minds!
They must be voted out asap!