Brown ignores calls for energy windfall tax

LONDON (Reuters) - Prime Minister Gordon Brown has ignored calls to impose a tax on energy firms' windfall profits, but looks set to face renewed demands for a levy at Labour's annual conference at the end of the month.

Choosing instead to make energy companies to pay for most of a 1 billion pound energy saving plan, Brown is hoping this latest initiative will bolster his flagging opinion poll ratings and combat calls from within Labour to step down.

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Brown's woes were compounded on Thursday as a "poll of polls" in the Independent newspaper showed that his attempted fightback was having no effect, despite a move last week to boost the housing market with help on stamp duty and a package to help first-time buyers.

Brown defended his decision not to tax energy suppliers.

"We looked at all possible options of both raising money and the action that we could take and that has been an inquiry that we had over the summer months," he said at his monthly press conference.

"Instead of a windfall tax, this is the better way of moving forward."

But the package to provide free home insulation to the poorest received a cold shoulder from lobby groups and unions.

Derek Simpson, joint leader of the Unite union, warned Brown that the issue would be raised again at Labour's conference.