Will a 40% tax on oil and gas companies reduce investment from about 13 billion down to 2.5 billion?

 Dear Rachel Reeves MP,

As Chancellor of the Exchequer, you will impose a windfall tax of almost 40% on oil and gas companies. 

Reports indicate that investment in the UK of the said oil and gas companies will fall from about 13 billion down to 2.5 billion and that therefore in coming years the tax revenues will be reduced accordingly.

When such tax revenues fall, how do you plan to replace oil and gas falling tax revenues?

I am also sending this message to my Member of Parliament, Helen Hayes MP, because I am very curious and very much interested in knowing about Plan B, if Plan A reduces tax revenues, what plans are in place to find tax revenues to replaced oil and gas tax revenues?

This is a very relevant question when you are about to implement a new state of austerity because we are talking both about tax revenues, investment and energy prices. If less oil and gas are produced, will this push prices up and therefore also push consumer prices up (inflation)?

Workers working in the oil and gas industries are highly especialized workers whose jobs are going to be in danger. We are talking about 35,000 highly trained individuals. If investment falls, it is also expected that unemployment will rise. Is this something that you have taken into consideration?

This could have a domino effect regarding industries that are closely linked to oil and gas industries. Is this something that you have taken into consideration?

Best regards,

Karl Hohenstauffen