One of the great success stories of modern British industry
North Sea oil and gas is one of the great success stories of modern British industry, which is why Chancellor George Osborne must take a long hard look at the taxes he imposed in his last Budget.
Most businesses think this Government has done a reasonable job in cutting tax and red tape on business compared to its Labour predecessor.
But its failure to redraft the new levy on the North Sea has been one of its worst own goals.
British Gas owner Centrica has mothballed its South Morecambe field because the extra tax makes it more economic to buy foreign gas that pump it up through its own rigs.
There is also evidence that producers are putting the brakes on new investment in the British sector of the North Sea in favour of Norway.
At a time when so much of British industry is under the cosh, and the global oil industry is going through turbulent times, the last thing the North Sea needs is self-inflicted problems.
The industry is lobbying hard for a rethink. For the sake of jobs and investment the Chancellor should swallow his pride and do a nifty about about turn.
Source: Express
