The SNP has accused George Osborne of “sitting on his hands” over tax cuts for the offshore industry on the eve of a debate in parliament today.
Aberdeen South MP Callum McCaig said “successive UK Governments” had “mishandled” North Sea oil and gas.
Today the SNP will use a debate in Westminster Hall to urge Chancellor Mr Osborne, to provide additional support to the offshore industry.
Thousands of people have already lost their jobs in the north-east as a result of the downturn, with First Minister Nicola Sturgeon recently admitting the industry is in crisis.
Mr McCaig 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 £300billion to Treasury coffers and with 20 billion 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.”
The SNP is calling for a reduction in the headline rate of tax, removal of barriers to exploration, improved access to tax relief for decommissioning and urgent consideration of other measures, such as loan guarantees.
Finance Secretary John Swinney has also written to Mr Osborne demanding similar reforms – although the Treasury did introduce tax breaks for the oil industry in the previous Budget.
Mr McCaig added: “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.”
The UK Treasury has said it has introduced reforms worth £1.3billion to the sector and has worked to reduce the headline rate of tax.
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