We’ll have power to tax the fatcats
Gas and electricity firms face big bills for bosses’ salaries
Energy firms face paying millions of pounds in a fatcat tax planned by Labour.
The country’s major gas and electricity suppliers have been criticised for paying massive salaries to their senior executives while customers struggle to pay their bills.
On Friday, British Gas hit three million customers with a 12.5 per cent hike in electricity prices – an increase of £76 a year.
Iain Conn, the chief executive of parent company Centrica, enjoyed a £1million pay rise last year, taking his total package to £ 4.1million.
Meanwhile, SSE boss Alistair Phillips- Davies saw his pay go up from £ 1.7million to £2.9million.
Perth-based SSE announced in Apr i l that they were increasing average bil ls by 6.9 per cent or £ 73 per year – and a month later revealed an annual profit of £1.8billion.
Labour have vowed to introduce “excessive pay levy” on energy bosses’ salaries simi lar to a fatcat tax for bankers if elected.
It would mean companies paying in tax 2.5 per cent of the salary of executives who earn more than £330,000 and five per cent on those paid more than £500,000.
Shadow Scottish Secretary Lesley Laird said: “It’s not right that families across the UK are facing soaring energy prices against falling wages – and it will enrage people that energy bosses are getting paid millions as a result of these prices. “Labour’s energy price cap would mean no one will pay more than £1000 while we reform the system to make it fairer and we’ll introduce an excessive pay levy that will tax companies who pay bosses and executives super-sized salaries.
“Labour will also introduce pay ratios in public contracts to clamp down on excessive executive pay.
“Neither the Tories nor the SNP have shown any appetite to tackle big business and make the system work for working- class families – only a Labour government will.”
Meanwhi le, the Scott ish Government are planning to launch their own energy firm to challenge the country’s big six energy companies.
A public consultation was launched in January and an announcement is expected before the end of the year.
The Scottish Government said: “The UK Government have failed to provide a competitive market that delivers fair and transparent energy bills for consumers.
“While the power to regulate the market rests with UK Government, we are determined to provide targeted support to those in need.”