An Aberdeen-based oil and gas expert said the industry had good reason to be concerned about higher taxes if Scotland becomes independent, but dismissed the idea it would also mean more red tape.
Andrew Reid, chief executive of energy consultancy Douglas-Westwood, said: “The reality is that much of the rhetoric coming through from the nationalists suggests there would be a lot more public spending. They would have to pay for that somehow, which is likely to mean additional taxes.”
On red tape, Mr Reid said the UK oil and gas industry was already well-regulated and it was hard to see why there should be any reason to introduce any “additional burden”.
Scotland Office Minister David Mundell said the EY/Aberdeen and Grampian Chamber of Commerce report highlighted why Scotland was better off remaining part of the UK, adding: “It is unsurprising that the oil and gas industry in Scotland is worried about tax increases.”
Mr Mundell said the UK Government was already committed to working with the industry to maximise the economic production of oil and gas resources. Westminster was also supporting the sector by providing certainty on decommissioning relief and field allowances to encourage investment as extraction becomes more difficult, he said.
“The recent £4billion investment by EnQuest in the Kraken field near Shetland is a good example of how this support is working,” he added.
A Scottish Government spokesman insisted there were “no plans to increase the overall tax burden on the industry”.
He said: “We welcome this contribution to the debate and we look forward to further engagement with Aberdeen and Grampian Chamber of Commerce and the industry on how independence can benefit the sector.”
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