U.K. oil producers, beset by low crude prices and some of the highest operating costs in the world, are likely to get some respite Wednesday when Chancellor of the Exchequer George Osborne sets out his annual budget.
The Chancellor slashing North Sea taxes in next week's Budget is not the answer for steadying the sector's financial course, according to a financial expert.
The UK cabinet minister said it is "important" that Chancellor George Osborne delivers for offshore firms in his budget this spring.
A north-east business body has called on the UK government to stick to its promise on cutting North Sea oil and gas taxes and to maintain fiscal stability after the general election. The Aberdeen and Grampian Chamber of Commerce (AGCC) has also called for “swift delivery” of a proposed £2billion Aberdeen ‘city deal’ to boost local infrastructure and make up for the benefits other cities will get with investment in high speed rail in its manifesto ahead of the May election.
George Osborne has confirmed that he will deliver new North Sea tax cuts within weeks – but also signalled that he wants to ban Scots MPs from voting on the Budget. The chancellor said he was "sure" that there would be "further steps" to protect oil and gas jobs in the Budget on March 18. The pledge was made by the Conservative minister as he gave evidence to Westminster’s Treasury select committee yesterday.