Hunt tells banks and energy firms to use profits to support customers and avoid a ‘fiscal intervention’
Chancellor Jeremy Hunt has urged big banking and energy firms to use their profits to help customers with the cost of living crisis, and avoid intervention from the Government.
In an article calling on corporations to support the public through Britain’s ongoing economic woes, he appealed to firms to be more responsible, pitching a “social contract”.
Energy firms Centrica, who own British Gas; Scottish Power and EDF are set to declare their half-yearly profits on Thursday, alongside producers Shell and Total.
While Lloyds Bank today declared pre-tax half-yearly profits of £1bn, ahead of Barclays tomorrow and NatWest on Friday.
MPs and regulators have been concerned about rising interest rates not being passed onto consumers as inflation continues to prove sticky.
Writing for the Times, Hunt said while profits were a “vital incentive” to invest and innovate, but stressed that firms have a “social contract” with customers and must treat them fairly.
He encouraged banks to up “measly” interest rates paid to savers and oil companies and food producers to pass on price falls at the petrol pumps and supermarket checkouts.
Hunt wrote: “For many, profits will go up significantly, which I will welcome – that is the business of capitalism.
“It will mean companies are growing, extra revenue for our public services, bigger pension pots and more jobs. But I also hope we hear about what they have done – and are doing – for their customers directly.”
He added: “But there is much companies can do to help their customers without fiscal intervention by the exchequer. And because the customer is king, I hope they do.
“Profit is the engine of investment, so we should welcome that. But the other side of the coin is a social contract in which customers get reassurance that they are being treated fairly.”