Last night, Gordon Banks, MP for Ochil and South Perthshire, said: "I have long lobbied that a windfall tax might be an appropriate way to go. It is revenue the government should fully evaluate.

"There is a significant number of Labour back benchers who think it would be an appropriate revenue stream."

Tomorrow, a delegation of Highlands & Islands MPs and Farmers Union representatives will meet Angela Eagle, the Treasury Minister, to raise concerns about the severe problems the rising fuel prices are causing to local rural businesses.

On Sunday, Chancellor Alistair Darling conspicuously failed to rule out introducing a new windfall tax on the oil companies, stressing how all tax matters would be addressed in his autumn economic statement. Thus far, UK Government policy, as defined in the 2005 PBR, was that there would be "no further increases in North Sea taxation during the life of this Parliament".

However, a Treasury spokesman told The Herald that, while there were "no plans" to impose a windfall tax, added: "Decisions on tax are taken by the Chancellor on a Budget by Budget basis."

Source: The Herald