Partner Article

Osborne ponders North Sea tax breaks

Chancellor George Osborne is reportedly set to offer hundreds of millions of pounds in tax breaks to gas companies, amid warnings that his £2bn Budget raid on their profits could strangle investment and push up prices.

The Treasury said that “field allowances” could be paid out to firms investing in the North Sea to ensure they remain profitable as long as they can present a “robust business case”.

Mr Osborne’s windfall levy on the North Sea oil and gas companies to finance a cut in fuel was the centrepiece of his Budget unveiled in the Commons on Wednesday.

But while motoring organisations broadly welcomed the move it was greeted with howls of protest from the oil and gas industry which warned that it could lead to job losses and curtail investment.

A Treasury spokeswoman confirmed that they were looking at the scope for paying out field allowances to support the sector:

“While there will be no exemptions to our Fair Fuel Stabiliser policy, the policy specifically includes scope to consider new tax allowances alongside the stabiliser to ensure that the North Sea remains a good place to invest, where a robust business case exists.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .

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Osborne ponders North Sea tax breaks

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