Thread by @tessakhan

The #SpringStatement is a shocking betrayal of millions of households in the UK who need urgent support.
@RishiSunak had an opportunity to help families via a windfall tax on extraordinary oil & gas profits, & failing to seize that is morally and intellectually indefensible.
/1

UK oil & gas cos are awash with cash. They're expected to enjoy the highest cash flows this year *since North Sea drilling began in the 70s*. They're also benefiting from a fiscal regime that has the lowest govt tax take in the world & the highest rate of return for investors.
/2

Sunak says he’s choosing not to impose a windfall tax because he wants to encourage investment in new UK production. But even with the incredibly generous fiscal regime we've had in place, inc 100% tax relief for new projects, there's little appetite for boosting production.
/3

Of 200 North Sea licences issued in the past 8 years, only 5 now have fields producing oil or gas. There's no getting around the fact that the NS basin is old and geologically complex, and companies will make decisions in their commercial interest--not in the public interest
/4

But it's even more irrational than that because more production (the majority of which will be exported) won't help people with rising bills, as the govt acknowledges, which is the real catastrophe we're facing.
What's the point of having more oil & gas if we can't afford it?
/5

The reality is that oil and gas companies are taking these windfall profits and handing billions to shareholders. There is no quid pro quo with the oil and gas industry, @RishiSunak. Time to get your priorities straight.
/END

CC @GreenpeaceUK @friends_earth @38degrees @TaxJusticeUK @WarOnWant

And for anyone buying the line that oil & gas companies need to hold on to their profits so that they can accelerate their transition to renewables, here's a thread I prepared earlier:

https://twitter.com/tessakhan/status/1491062082393210881?s=20&t=1B72CjJPKK4aaSGB6JbR9A