The SNP’s Westminster Economy spokesperson has written to
Chancellor demanding reassurances that
the UK government will not use the upcoming Autumn Budget to
undermine the North Sea’s recovery with tax rises.
warned the Treasury
against using Scotland as a “cash-cow”, and that any hike in
taxes just as the industry is strengthening “would risk the
sector’s ability to invest and extract the North Sea’s full
potential upon which so many jobs and our wider economy depend.”
The North Sea reported that production efficiency rose for the
fifth consecutive year, reaching 74% in 2017, with the industry
reporting a stronger and sustained performance over the past two
years.
It follows reports in the Financial Times where a Treasury
spokesperson stated that the UK government was reviewing taxation
and recognised “fiscal reform” as a means of reducing overall
revenues from the oil industry, as well as adding that the North
Sea “continues to deliver significant economic benefits to the
UK”.
Commenting, said:
“Despite the UK government’s abject failure to support production
during its recent time of need, the oil industry in the North Sea
has been on the road to recovery and is rebounding with
production efficiency rising for the fifth consecutive year.
“However, firms are still finding conditions tough and, as such,
it is imperative that the UK government exercises its reserved
powers to do more to stimulate exploration and attract fresh
investment.
“Using Scotland once again as a cash-cow, just as it is
strengthening, risks the sector’s ability to invest and extract
the North Sea’s full potential upon which so many jobs and our
wider economy depend.
“That is why it is vital that the Chancellor provides urgent
reassurances that the UK government will not seek to use the
Autumn Budget to undermine the North Sea’s recovery with tax
rises.
“I look forward to the Chancellor's response and hope that the UK
government will not go down the road once again of jeopardising
Scotland's vital oil and gas sector with ill-thought through tax
hikes and further mismanagement."
ENDS
Notes for editors:
North Sea production recovery fuels fears of tax blow in Budget:
https://www.ft.com/content/231b1da8-a21a-11e8-85da-eeb7a9ce36e4
