Chancellor Rachel Reeves is facing mounting pressure to introduce a controversial windfall tax on commercial banks in next week's Autumn Budget, with the SNP arguing that even Margaret Thatcher supported such a levy.
SNP's Budget Proposal
Stephen Flynn, the SNP Westminster leader, has publicly urged the Labour government to adopt plans proposed by the IPPR think tank. This proposal would see a tax imposed on major banks specifically to fund a £300 reduction in household energy bills this winter.
The call comes as Labour ministers continue to grapple with what they describe as a £40 billion black hole inherited from the previous Conservative government. This will be the second budget delivered by the current Labour administration.
Historical Precedent and Funding
The proposed tax draws direct parallels with a similar measure considered by Margaret Thatcher's government. Analysis suggests such a levy could generate approximately £8 billion annually, providing significant funding for energy bill support.
Flynn stated: "This SNP Budget proposal would immediately right the wrong of the Labour Party's broken promises on energy bills and put money directly into people's pockets this winter."
Political Pressure Mounts
The SNP leader directly challenged Labour's position, asking: "People will rightly ask what the point of the Labour Party is, if they aren't prepared to introduce a bank levy that even Margaret Thatcher thought was a good idea?"
He emphasised that cutting energy bills by £300 was a specific election promise made by Keir Starmer, noting that instead of decreasing, bills have actually increased by nearly £200 since the election.
Flynn accused Chancellor Reeves of preparing to "let the banks off the hook" despite her public statements that "each of us must do our bit" to address the Treasury's financial challenges.
The SNP leader concluded that only with Scottish independence could Scotland properly harness its energy resources to control bills long-term, while urging immediate action: "Instead of the Labour Party fighting amongst themselves, people would be far better off if we were all focused on fighting to bring down energy bills this winter."
