EFFECTS OF MARCH 2011 BUDGET ON NORTH SEA OIL AND GAS JOBS AND INVESTMENT

That this House is deeply concerned at the surprise announcement in the Budget of an increase in supplemental taxation on oil and gas profits from 20 to 32 per cent. raising marginal taxation to 81 per cent. in some cases which has damaged investor confidence in the UK offshore industry and could lead to a loss of investment, jobs and damage to the UK balance of payments;recognises that the UK Continental Shelf is a mature province with ageing infrastructure and developments increasingly being led by small and medium-sized operators and investors competing for funds in a global market place where investors can see lower costs and more stable tax regimes than exist in the UK; calls on the Government to reconsider its decision in the light of this evidence and the fact that gas prices are considerably below the Government's stated threshold price of $75 per barrel; and concludes that a Budget that undermines Britain's most successful industry and which accounts for a third of industrial investment cannot reasonably be described as a budget for growth.