The Exchequer Secretary to the Treasury, Damian Hinds, today (Wednesday 10 June) shared his vision for the oil and gas industry at the first Fiscal Forum of the new parliament.
The Minister reemphasised the government’s commitment to the long term plan the Chancellor set out in December, while also highlighting the need for the industry to deliver on its part by making efficiencies.
The package of support, which is expected to encourage over £4 billion of additional investment in the UK’s oil and gas industry over the next five years, included a new investment allowance to drive investment in the North Sea, as well as a reduction to the headline rate of tax from 32% to 20%.
At the Forum, the minister confirmed that the government would deliver on the outstanding elements of the package over the coming months, including:
expanding the scope of the investment allowance to include additional investment, which will help maximise economic recovery
joint work between the Oil and Gas Authority (OGA), the Treasury and industry looking at the barriers to exploration and improving access to infrastructure
As well as highlighting the government’s commitment to continue to support the industry, the Minster made clear his expectation that the industry itself will deliver on its promise to make substantial progress on reducing costs and improving production efficiency.
Exchequer Secretary to the Treasury, Damian Hinds, said:
I hosted a Fiscal Forum today within my first weeks in office because I recognise the importance of the North Sea to the whole of the UK and the many thousands of jobs it supports.
The package of support announced at Budget earlier this year demonstrates the government’s long term commitment to supporting the North Sea oil and gas industry and ensuring that both the industry and the nation continue to benefit from the billions of barrels of North Sea oil still to be extracted.
Now it’s important that the industry takes action to keep the North Sea competitive and maximise its potential.