The Welsh Liberal Democrats have hit out at the Conservatives following the announcement today that BP had made £7.1bn in underlying profit.

The news comes on top of the news last month that Shell made £8.2bn profits during the third quarter of this year. Despite this profit Shell actually received a tax rebate from the UK Government.

The Liberal Democrats were the first political party to call for a windfall tax over a year ago.

Commenting Welsh Liberal Democrat Leader Jane Dodds MS said: “These obscenely high profits show the Government’s pathetically low windfall tax is completely failing.

“The CEO of Shell himself has called for a fairer and more effective windfall tax. The government must urgently fix its failed policy before millions more in vital tax revenue are lost.

“Due to the inaction of the Conservative Party, our hospitals, schools and other vital public services are facing huge inflationary pressures to their budgets that may lead to services being reduced or scrapped altogether as health boards, councils and other public bodies have to make their already stretched budgets go further.

“A real windfall tax could be raising billions to protect public services and help keep families warm this winter, instead this loophole is boosting the coffers of oil and gas companies.

“In countries like Spain windfall taxes on both energy giants and large banks have helped fund assistance programmes to help families and public services cope over the winter. If it can be done elsewhere the Conservatives have no excuse not to act in the UK and the electorate will remember it if they continue to choose not to.”