Highlights

• Windfall tax on banks could raise £7 billion annually for green energy projects.
• Energy Security Bank offers loans up to £20,000 for households and £50,000 for businesses.
• Household energy bills could fall by £500 through solar panels, heat pumps, and insulation.

The Liberal Democrats have proposed a windfall tax on big banks to fund loans for households and small businesses to install renewable energy systems.

Deputy leader Daisy Cooper said the extra profits banks have earned due to high interest rates could provide around £7 billion a year by the end of the decade. The proposal comes as banks’ profits are forecast to nearly double, from £25 billion in 2019 to almost £50 billion in 2025.

The party plans to create a new Energy Security Bank that would offer loans of up to £20,000 for households.

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Cooper said that the scheme would help the “missing middle,” households that earn too much to qualify for government grants but need help with energy costs. By installing solar panels, heat pumps, and insulation, these households could save around £500 a year on energy bills.

In addition, community energy groups and small businesses could access loans up to £50,000.

Cooper said the projects would eventually pay for themselves. The Energy Security Bank would also fund solar panels in supermarket car parks in major towns, generating enough electricity to power a city the size of Bristol or Nottingham each year.

Cooper addressed concerns that renewable energy increases costs, arguing that claims from other political parties were misleading.

Also Read: CommBank Introduces Energy Efficiency Programme for Customers

She said the windfall tax would take a small portion of the banks’ profits and could help banks resume lending with lower interest loans.

While she has not yet spoken to banks, Cooper indicated discussions would happen soon, and she stressed that the government would work with banks as partners.

Ends/

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Source: BBC