The Chancellor showed “considerable foresight” in cutting taxes on North Sea oil ahead of the plunge in commodity prices, William Hague has said.
The Commons leader said the dramatic falls in oil prices were good for the economy overall but added the Government took seriously the hit on employment in the sector.
BP has announced 300 job losses in Aberdeen where much of its North Sea oil business is based.
Answering questions on the weekly Commons business statement, Mr Hague said: “Overall … the reduction in oil prices is beneficial to the British economy and to the world economy but it can of course have, as these announcements show, damaging impacts on employment in the North Sea industry.
“That is why the Chancellor in the Autumn Statement reduced taxes on the industry and I think he showed considerable foresight in doing so.
“The Energy and Climate Change Secretary (Ed Davey) is in Aberdeen today discussing the situation with industry leaders and so the Government takes very seriously, of course, that situation.”
Mr Hague answered Labour MP Cathy Jamieson (Kilmarnock and Loudoun) who asked about the impact on jobs and the wider supply chain.
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