Tesco chairman calls for contingency energy tax
The president of Tesco called for an unforeseen tax on energy producers to help families struggling in the cost of living crisis.
John Allen told Radio 4’s Today that he hoped the Queen’s speech today would include support for people in need, including help with the jump in energy prices.
And he is throwing his personal support behind the contingency tax on energy producers that many groups, including the Labor Party, have been pushing for.
Alan says:
I think there is a huge argument for an unforeseen tax on the profits of these energy producers, sent back to those who need help the most for energy prices.
I think that would be the greatest thing that can be done.
Question: The argument against this is that it can stop companies from investing in energy sources [as the government has argued].
Alan, who expresses a personal opinion, not Tesco’s view, dismisses this:
I think they are expecting it and I doubt that they will actually be very phased by it. And it should only be short-term.
[Last week, BP’s CEO Bernard Looney undermined Boris Johnson’s argument against a windfall tax, saying it would go ahead with investment in Britain even if a levy were imposed]
Tesco President John Allen told BBC R4 that there was a “huge case” of an unforeseen tax “returned to those most in need” of energy prices.
Allen says his personal opinion is that “energy companies expect this and I doubt they will actually be very phased out of it.”
– Ashley Cowburn (@ashcowburn) May 10, 2022
Allen also explains that he visited a Tesco store over the weekend and heard people telling cashiers to stop scanning products when the bill reached a certain amount, such as £ 40.
This is a sign of how stretched some families are, he added.
Many people feel something like a pinch and many people actually feel extremely stretched.
Tesco President John Allen at @BBCr4today calls for an unforeseen tax on energy companies to alleviate the cost of living crisis …
– Hannah Utley (@huttleyjourno) May 10, 2022
Updated at 08.42 BST
In Germany, investors are a little less pessimistic about the prospects for Europe’s largest economy.
Measurement of investor confidence at the ZEW Institute for Economic Research has risen but remains negative as Germany is hit by high inflation, rising energy costs and supply chain disruptions due to the war in Ukraine and the blocking of Covid-19 in China .
ZEW’s economic expectations index rose to -34.3 in May from -41.0 in April, better than forecast.
This shows that the economic outlook is still expected to deteriorate, but at a slower pace than previously expected, said Achim Wambach, president of the ZEW Institute.
* GERMAN ZEW CAN EXPECT INVESTORS AT -34.3; EST -43.5
Zew bounced back in May, better than expected pic.twitter.com/E9JQry9zbW
– Macro to micro loan @ (@Credit_Junk) May 10, 2022
The index of current conditions fell to -36.5 from -30.8, which shows how the economic situation has weakened.
Current ZEW conditions have deteriorated, but expectations have improved more than expected:
* Economic expectations for German May ZEW -34.3 against -41.0 last and -43.0 expected * Current conditions for German May ZEW -36.5 against -30.8 before
– CITY INDEX (@CityIndex) May 10, 2022
ZEW EURO AREA: KOVID RESTRICTIONS IN CHINA CONTRIBUTE TO DETERIORATION IN THE ASSESSMENT OF THE ECONOMIC SITUATION THERE, THIS IS A HEAVY WEIGHT FOR THE FUTURE ECONOMIST.
– Extraordinary news FinancialJuice (@ Financialjuice1) May 10, 2022
Elsewhere, Philippine government bonds are weakening after Ferdinand Marcos Jr., the son and namesake of the late dictator, won the country’s presidential election, sparking street protests.
Bonds due in 2030 fell 1.3 cents to 130 cents a dollar, according to Tradeweb, according to Reuters.
Marcos Jr., better known as “Bongbong”, won with great success – a remarkable return for the family of the deposed dictator, which provoked protests in the streets.
My colleague Rebecca Ratcliffe explains how it happened:
Marcos Jr., 64, is running under the slogan “We will be resurrected together”, sparking nostalgia for his father’s authoritarian regime, which the family and supporters described as a golden age in an online disinformation campaign as social media was flooded with false stories that removed atrocities and corruption widespread during the period.
Such images terrified survivors of the brutal regime of Marcos Sr. Thousands of political opponents were tortured, arrested and disappeared under his rule, while as much as $ 10 billion (£ 8 billion) was looted.
Marcos Sr. was ousted from power in the 1986 People’s Revolution, when the family was humiliated by helicopter from the presidential palace and fled into exile.
Contrary to financial markets, European stocks retained their earlier gains as some traders sought lucrative deals after Monday’s defeat.
But the mood is still tense, according to Russ Mold, investment director at AJ Bell.
“After another miserable session in the United States yesterday, Europe and the pockets of Asia managed to avoid defeat and move forward on Tuesday. This is unexpected, given that market sentiment is weak and the VIX “fear” index yesterday jumped to its second highest closing price in 12 months.
The most well-known indicator of market sentiment is the CBOE volatility index or “VIX index” (expected market volatility for the next 30 days). As markets (S & P500 here) shrink, VIX increases and vice versa, often depicting extremes and potential opportunities. (Bloomberg data) pic.twitter.com/c3Or2l64ZR
– DFM (@DFMGlobal) May 10, 2022
“Equities have been struggling this year, with investors worried about inflation, rising interest rates, a slowdown in the global economy, the war in Ukraine, new Covid outbreaks in China, weak consumer spending and fears that business investment could take the back seat.
“The story went from ‘how can I make money?’ To ‘how can I protect my money?’
In London, the FTSE 100 rose 56 points, led by industrial software maker Aveva (+ 4%), engineering firm Melrose (+ 4%) and tobacco group Imperial Brands (+ 2.9%).
Julia Coleue
John Allen’s call for an unforeseen energy tax comes when British Gas owner Centrica predicts annual profits will exceed expectations.
And as a sign of economic hardship caused by the energy crisis, British Gas is hiring hundreds of more staff to deal with the sharp rise in the number of troubled customers struggling to cope with growing bills.
My colleague Julia Koleve explains:
The company will hire another 500 people for calls from a growing number of people facing higher energy bills at a time when the broader cost of living is outpacing wage growth, putting pressure on household budgets.
A Centrica spokesman said the demand for customer service had been “phenomenal” over the past year. “We are hiring additional staff to manage this demand,” they said.
“Customers are very concerned about rising energy costs and we want to help them as much as we can.”
The average dual-fuel tariff for households jumped to just under £ 2,000 a year on April 1, when the UK’s energy regulator raised the price cap by 54% to reflect incredible wholesale gas prices. The bills are ready to increase at the next review of the energy price cap in October.
Centrica said in a commercial statement on Tuesday that it expects operating profits for 2022 to come at the top of City’s forecasts, which range from £ 739 million to £ 1.4 billion.
Centrica shares jumped 4.5%.
Tesco President: We see real food poverty
John Allen also warns that the UK is seeing “real food poverty” for the first time in a generation.
Tesco’s chairman said today that many supermarket customers were struggling to heat their homes and feed their families, with inflation being the number one concern.
More and more people are turning to food banks, including people who have never had to use a food bank before.
Alan warns:
“We see real food poverty for the first time in a generation”
“We see real food poverty in this country for the first time in a generation”
Tesco President John Allen, pretty damned about #CostOfLivingCrisis and the need for an unforeseen tax on energy companies @ BBCr4today
This should be a priority for #QueensSpeech
– Andrew Pekes (@andrewpakes_) May 10, 2022
In another government post, Allen also criticized recent tax increases, such as raising national security.
Honestly, if I were Chancellor, which is an extremely unlikely event, I wouldn’t do it.
It may be more sensible in the long run, but right now … “If I were in government, I would put it back,” Alan added.
John Allen also called on ministers to reform business interest rates:
If business interest rates were reformed and reduced, this would help especially small and medium-sized businesses, which, if we are not careful, will not see the current crisis.
Tesco’s chairman says non-food retailers are most at risk because customers will make deeper cuts in their discretionary spending than on basic things like food.
Tesco is one of several retailers, along with Sainsbury’s, Greggs and Waterstones, to form a new group pushing for cuts in business tariffs, possibly funded by an online sales tax.
Tesco chairman calls for contingency energy tax
The president of Tesco called for an unforeseen tax on energy producers to help families struggling in the cost of living crisis.
John Allen told Radio 4’s Today that he hoped the Queen’s speech today would include support for people in need, including help with the jump in energy prices.
And he is throwing his personal support behind the contingency tax on energy producers that many groups, including the Labor Party, have been pushing for.
Alan says:
I think there is a huge argument for an unforeseen tax on the profits of these energy producers fed …
Add Comment