Wednesday 3 December 2014

Osborne cuts tax for oil and gas

Osborne cuts tax for oil and gas

Chancellor George Osborne has given the oil and gas industry a tax boost in today's Autumn Statement.

In a speech devoid of much energy content, Mr Osborne announced a 2% cut in tax from the new year to encourage investment and boost production in the North Sea.

The so called "Supplementary Charge reduction" which falls to 30% will apply across the whole industry.  He also ring fenced future expenditure for offshore oil and gas activities for a further four years, from six years to 10.

The Chancellor said of the cut, " this demonstrates our commitment to the tens of thousands of jobs that depend on this great British industry.”

However green groups weren’t convinced. A spokesperson from Friends of the Earth said: “The Chancellor has cut tax for dirty gas and oil despite overwhelming scientific evidence of the need to end our fossil fuel dependency.”

The Chancellor confirmed he will provide £5 million in funding for a new regulatory body for oil and gas. The details of which will be confirmed tomorrow. The UK oil and gas industry is worth around £35bn to the economy.

Written by

Bruna Pinhoni

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