Rachel Reeves, Bloomberg Westminster, BP discussed on Bloomberg Daybreak Europe


Just not the conservative way Never mind how angry energy bosses are about all of this Yeah absolutely and the opposition of course talking about the government dithering dithering delay This is their kind of characterization isn't it of the government so you have Rachel Reeves the shadow Chancellor talking about that yesterday Yeah So a bit of a raid then on the oil and gas firms but where does the rest of the money come There's quite a big gap isn't there Borrowing in a word The package is going to drive government borrowing back above a 100 billion pounds this year and this is at a time when growth is weaker than expected so that's robbing soon I could have tax receipts It's also at a time of higher inflation higher interest rates adding billions of pounds to the cost of debt servicing so it's a nightmare really for the public finances But as I say growth would have been even weaker without it Yeah okay Lizzie interesting that we're looking at some of the other reactions to that announcement of the windfall tax from other energy companies as a story on the terminal takes in not only we were talking about BP but we've also got a statement from Shell and quest as well which produces more than 90% of its oil and gas in the UK saying it was disappointed with the implementation mechanics of the new levy so as you can imagine the industry in a bit of I suppose trying to react to all of that Yeah and also of course this choice quote from a conservative MP who's been on Bloomberg Westminster with us in the past Richard drax saying that the Chancellor is throwing red meat to the socialists I mean that's quite a kind of rhetorical phrase to use That raising taxes on business and telling them where to invest is not the way to do things Yes but when you see the opposition Labor Party and saying that the worst criticism is we'd have done it but we'd have done it more Yeah Okay And they weren't alone as well I mean it wasn't just labor to the S&P was also supporting this as well and of course a lot of that oil and gas businesses are in their own backyard Yeah I mean having said that I do think that there has been kind of a change quite a seismic change in terms of how the oil and gas companies have responded this time around And they were trying to explain that there would be there would be investment in the UK So they tried to get ahead of the story You're smiling Lizzie I'm smiling because people in the government are blaming the BP CEO Bernard Looney for previously saying that a windfall tax wouldn't affect BP's investment plans now BP says it'll look again at its plans in the UK so make your mind up Well and also look again is not a decision on withdrawing the money yet Anyway there's still a long way for this to run isn't there And you'll continue to follow it for us So really appreciate you coming on Bloomberg radio this morning That's our UK economy reporter Lizzie burden Yeah we're going to be talking a lot more about that Of course over the coming days with Bloomberg Westminster as well Of course as we speak to MPs every day here at midday on Bloomberg radio to get the latest political reaction to that too Coming up we'll be getting into the latest market moves we're about 20 minutes away from the start of trading here in Europe Euro stocks.

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