Commenting as the Chancellor of the Exchequer Philip Hammond visits Aberdeen, Oil & Gas UK Chief Executive Deirdre Michie said: “It’s good to see the Chancellor here in Aberdeen. His visit sends a strong message of support for industry and his funding announcement to help stimulate exploration – that has been particularly hard hit by the downturn – is a welcome boost.
“I look forward to meeting the Chancellor and will use this opportunity to update him on the progress industry has made in terms of improving costs and efficiency.
“The UK Government has already made some positive changes to our fiscal regime which have helped reposition the basin as globally competitive.
“Building on this, we need HM Treasury to maintain its commitment to the Driving Investment plan and also enable transferable tax history in the Autumn Budget, which we believe will further unlock the transfer market for late-life assets, encourage more investment, and delay decommissioning for as long as possible with the associated benefit to the Exchequer and the UK.
“We are also seeking a strong partnership with Government to support our world-class supply chain and help it capture a greater share of the export market.
“This is an industry that makes an extraordinary contribution to the UK economy helping meet our energy needs, making an estimated contribution of £17 billion to the UK’s balance of trade and supporting 300,000 jobs across the UK. Our supply chain also exports almost £12 billion exports of goods and services around the globe.
“With the right support from Government, and a relentless focus on efficiency from industry, we can maximise our domestic resources, while anchoring our supply chain here in the UK for the long-term.”
Notes to Editors
Oil & Gas UK has submitted its asks of Treasury from the forthcoming Autumn Budget. The trade body is calling for:
- Continued public commitment to the Driving Investment Plan – as this provides investors with the required fiscal predictability and confidence to invest in the UKCS.
- Enabling Transferable Tax History – allowing a part of tax history to transfer from the seller to the buyer of North Sea oil and gas assets, which allows assets to move to those most suited to extend the productive life of the basin.
- Support for the supply chain – by improving access to finance and recognition of competitiveness, attracting new investment.