SNP renews calls for action in Budget to support UK oil and gas industry

The Scottish National Party will today use a Westminster debate to renew its calls on Chancellor George Osborne to deliver fiscal support for the North Sea oil and gas industry at the Budget in order to secure the industry’s recovery.

The Chancellor is coming under increasing pressure from north of the border to deliver new fiscal support for the industry in his Autumn Statement but has so far not made any commitment.

The continued pressure from the SNP’s considerable Wesminster presence has been echoed by industry trade body Oil and Gas UK, trade unions, and other industry experts.

Securing support for the future of the industry is one of the SNP’s priorities for the Budget.

The SNP are calling on the UK government to take four key actions to improve the fiscal regime and support the long-term future of the industry:

The SNP have warned that without urgent action there is a risk that the current low oil price could lead to the premature decommissioning of North Sea assets and further job losses.

Commenting ahead of the debate, SNP Energy spokesperson Callum McCaig MP said: “After many months of sitting on his hands the Chancellor must now step up to the mark and deliver the fiscal support that the oil and gas industry needs to protect jobs and secure recovery.

“Scotland’s oil and gas industry has contributed more than £300bn to Treasury coffers and with 20bn barrels still to be extracted the future can be bright – but it is vital that the UK government does its bit to support the industry through this difficult period.

“With a fortnight until the Budget it is time for the Chancellor to listen to the experts and take the long overdue decision to reduce the North Sea tax burden and introduce much-needed fiscal reforms.

“The efforts of the industry to improve efficiency, reduce operating costs and increase production must now be matched by UK government action to create a competitive tax regime that stimulates exploration and development, attracts investment and protects jobs – so that we can make the most of the North Sea basin’s continued potential.

“The SNP Scottish Government has taken the action it can to support those affected by the downturn through the Energy Jobs Taskforce – including £12 million in funding to help oil workers retrain in other fields – and £379 million investment in the North East of Scotland.

“Successive UK governments since the 1970s have mishandled the huge income generated from Scotland’s oil and gas sector. At a difficult time for the industry it is imperative that the Chancellor takes the urgent action needed at this Budget to secure its future.”