UK North Sea oil & gas businesses seem set to benefit from a taxation boost, with announcements expected in the Autumn budget this week. The announcement should serve to boost sector investment and mitigate concerns over rising operational costs and falling oil prices.
The announcement is expected to come as part of a package of business support measures from the Chancellor, with the budget being the last scheduled before the next General Election. Four years ago, Mr Osborn raided UKCS profits via the budget and the industry warned that he had put nearly 40,000 British jobs at risk as a consequence.
Oil & Gas UK has called upon the government to show stronger commitment to an industry which provides vast tax revenues to the country. With production now falling, the Treasury otherwise risks further boosts for the public purse, unless it works to stimulate private sector investment.Last updated on 08:47AM - 04/12/14