Oil and gas chiefs welcomed the prospect of further tax breaks yesterday after holding their first formal talks with the new UK Government.
Ministers and industry leaders met at the Fiscal Forum, where Treasury minister Damian Hinds pledged to continue to support the sector during the downturn.
As revealed yesterday, the Exchequer secretary confirmed at the summit that the government intended to expand the scope of the new investment allowance, and move to boost exploration and access to infrastructure.
The commitment raised hopes that Chancellor George Osborne could announce extra incentives for the sector in his post-election Budget on July 8.
However, the minister also warned industry leaders that the government expected offshore firms to continue to cut costs and improve efficiency over coming months.
Oil and Gas UK chief executive Deirdre Michie said: “We had a positive meeting with the Exchequer secretary earlier today and are heartened to hear of his government’s commitment to measures which can provide immediate support and form a long-term strategy to reduce the burden of tax on the basin over time.
“It is essential that appropriate action is taken by Budget 2016, if not sooner.”
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