Thread by @Tom___Scott

Key point that's being missed about Rishi Sunak's Energy Profits Levy (#WindfallTax) on oil & gas profits: companies will be able offset investment in new fossil fuel extraction against their taxable profit. That's exactly what they'll do.

This tax is highly damaging to climate.

That's why Rishi Sunak didn't simply raise the existing Supplementary Charge on N. Sea oil & gas. That also allows investment offsets but not as big & only after profits from investment are booked.

The fossil fuel interests that fund the Tory Party will be delighted.

... in fact, it's unlikely the #windfalltax will raise anything like as much as is being claimed. Nor will encourage investment in renewables.

With oil & gas profits soaring, fossil fuel corps will minimise their tax liability by ploughing profits back into new oil & gas...

... so the #windfalltax is a typical Tory smoke-and-mirrors gimmick.

It won't do what's claimed, it's highly damaging to climate & it will allow the fossil fuel companies to pretend that they're making much more of a contribution to the Treasury than will in fact be the case.

...incredibly, the offsetting of investment against profits by the oil & gas companies will *only* be allowed for oil & gas investments - NOT renewables.

Rishi Sunak didn't mention this in his announcement today, perhaps because it's so mind-bogglingly stupid.

HT @DrSimEvans

... & this massive increase in government subsidy for new fossil fuel extraction comes just a few months after the UK signed up to “accelerating efforts” to phase out such subsidies, in the Glasgow Climate Pact agreed at #COP26.
Thoughts, @AlokSharma_RDG?
newscientist.com/article/229745…