SNP: Autumn Statement a Betrayal for Oil, Gas Industry

SNP: Autumn Statement a Betrayal for Oil, Gas Industry
The SNP describes the UK Chancellor of the Exchequer's recent autumn statement as a betrayal to the oil and gas sector.

The SNP (Scottish National Party) has described the UK Chancellor of the Exchequer’s recent autumn statement as a betrayal to the oil and gas sector, claiming it ignored key industry demands that will result in a loss to vital capacity and skills in the supply chain.
 
With no action in relation to loan guarantees for vital pieces of infrastructure, investment or tax concessions in relation to exploration, we risk losing vital capacity and skills that will support production and ensure we maximize economic recovery from the North Sea, Keith Brown, SNP Cabinet Secretary for Jobs, Economy and Fair Work said.
 
“This was their chance…to pay back an industry which has put billions into the UK Treasury, which according to the Treasury’s own forecast, will put more billions back into the Treasury, and yet they did nothing,” he added.
 
Gillian Martin, SNP MSP (member of Scottish parliament) for Aberdeenshire East echoed Brown’s views.
 
“In…[the] autumn Statement we got no incentives for exploration and development in the North Sea, no loan guarantees and no support for decommissioning. How many oil and gas jobs have to burn before the Tories will finally wake up and take action? I am bitterly disappointed that the Chancellor neglected this vital industry,” Martin said.
 
“The Treasury has pocketed North Sea revenues for years and the Tories will happily reap the benefits of the extremely positive outlook that is forecast for oil and gas from 2017 onwards, without supporting the industry and its workforce through more challenging times. They should not get away with using the North Sea as a cash cow without returning the favour stimulating exploration and providing the necessary investment, loan guarantees and tax incentives,” she added.
 
“Oil and gas in the North Sea needs exploration in order to continue to develop, and it needs the UK government to put their money where their mouth is and protect and invest in its future,” Martin continued.

UK Chancellor of the Exchequer Philip Hammond pledged Wednesday to stick to the oil and gas industry tax cuts announced by his predecessor George Osborne in March.

“My priority as Chancellor is to ensure that Britain remains the number one destination for business, creating the investment, the jobs and the prosperity to protect our long-term future,” Hammond said in his autumn statement.

“I know how much business values certainty and stability and so I confirm today that we will stick to the business tax roadmap that we set out in March…We will deliver the commitments we have made to the oil and gas sector,” he added.

The previous Chancellor of the Exchequer, George Osborne, announced significant tax cuts to help “one of the most important and valued industries” in the country in his Budget speech on March 16. The measures included halving the Supplementary Charge on oil and gas from 20 percent to 10 percent, and the effective scrapping of Petroleum Revenue Tax. The ex-Chancellor also revealed that the tax cuts would be backdated to be effective from Jan. 1.

A graduate in journalism from Cardiff University, Andreas has eight years of experience as a business journalist. Email Andreas at andreas.exarheas@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Sandy Watson | Nov. 26, 2016
I wonder if that is because they are trying to push fracking at the expense of everything else? I personally hope we support the offshore industry and ditch shale.


Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Andreas Exarheas
Assistant European Editor | Rigzone
 -  Analysts: OPEC Deal will see Brent Hit... (Dec 2)
 -  Ex-Oil Workers Look to Grow Aberdeen B... (Dec 1)
 -  Centrica: Oda Field to see $634M Inves... (Nov 30)
 -  Environmental Report on UK Oil, Gas In... (Nov 29)
 -  BLOG: Oil, Gas Job Cuts Due to Brexit ... (Nov 28)


Most Popular Articles

From the Career Center
Jobs that may interest you
US Houston: Division Finance & Accounting Manager
Expertise: Accounting|Financial Analyst
Location: Houston, TX
 
Expeditor
Expertise: Driller|Logistics Management|Materials Management
Location: Anchorage, AK
 
SharePoint Project Manager
Expertise: IT - Programming & Database|Project Management
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $54.46/BBL 0.96%
Light Crude Oil : $51.68/BBL 1.21%
Natural Gas : $3.44/MMBtu 1.99%
Updated in last 24 hours