Oral question asked in the House of Commons, by Stewart Hosie (Scottish National Party). It was answered on Tuesday, 27 January 2015 on behalf of the Treasury.

Oil Prices

Question: The oil industry has told us that the softening in the oil price has highlighted the underlying problem in the North sea, which is the high cost of doing business there, driven by an up to 81% tax on production. Instead of waiting till the Budget, will the Chancellor take urgent action on investment allowances and on a cut to the supplementary charge?

Answer

The Chief Secretary and I certainly recognise the pressure on the North sea producers. We want to make sure that we continue to extract the maximum amount of oil from the North sea basin. That is why we cut oil taxes at the autumn statement, published a consultation on the investment allowance and made it clear that further action may be required at the Budget.

May I draw it to the House’s attention that what the hon. Gentleman calls the softening of the oil price would have done disastrous damage to the finances of an independent Scotland? The Scottish National party’s projections for its oil revenue were out by almost threefold. It is a reminder of the strengths of the United Kingdom that we can bear pressures such as a falling—or, indeed, a rising—oil price across the entire UK.

Secondary information

Type: Oral question
Reference: 591 c710
Session: 2014-15
Oral question type: Supplementary
Chamber / Committee: House of Commons chamber
Subjects: Oil Prices
Link: View this Oral question on www.publications.parliament.uk

Oil Prices

Secondary information

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