Sir David Davis raises concerns about the stability of tax and economic growth


As published by The Telegraph:

Tory MPs have warned Rishi Sunak that his windfall tax on oil and gas giants could stifle economic growth as the Chancellor was accused of “throwing red meat to socialists”.

Mr Sunak announced he is imposing a tax on the excess profits of energy firms to fund a new Government spending spree to help struggling households cope with the cost-of-living crisis.

But the prospect of a new tax on business prompted warnings from some Tory MPs who questioned whether it is consistent with Conservative values.

David Davis, the former Cabinet minister, said that “stability of tax and low tax both encourage investment and growth” as he asked Mr Sunak: “Is there not a risk that the Exchequer will lose more in growth than it will gain in the windfall tax?”

Fellow Tory MP Richard Drax said: “Can I warn (Mr Sunak) that by throwing red meat to socialists by raising taxes on businesses and telling them where to invest their money is not the Conservative way of encouraging those who create our prosperity and jobs to do just that.”