Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Tax Take From North Sea Oil To Dry Up After Global Price Slump

Recommended Posts

http://www.independent.co.uk/news/business/news/tax-take-from-north-sea-oil-to-dry-up-after-global-price-slump-10314645.html

The Treasury’s official forecaster expects the Treasury to receive just £2bn in tax revenues from the North Sea oil industry over the 20 years after 2020 due to the collapse in the global oil price.

The independent Office for Budget Responsibility (OBR) made the shock prediction in its latest fiscal sustainability report. This time last year, before the near halving of the price of a barrel of Brent crude, the OBR was expecting the industry to generate around £37bn in tax revenues between 2020 and 2040.

The change underlines how the seismic shift in the global energy markets will affect the UK’s public finances and pose a serious challenge to the Scottish National Party, much of whose case for an economically flourishing independent Scotland rests on the premise of abundant revenues from the North Sea.

At the time of the March Budget, the OBR lowered its forecast for oil revenues over the five years to 2020 from an average of £2.6bn a year to £700m.

Its latest forecasts actually suggest that the contribution to the Treasury from the North Sea will turn negative in the 2020s as companies offset trading losses and rig decommissioning costs against tax.

O dear looks like George might have a bit of a problem.

Rapidly increasing debt servicing costs and the golden goose of North Sea oil contracting. Still I'm sure cutting benefits to poor people will help fix all these problems.

Share this post


Link to post
Share on other sites

If they've assumed the March price likely idiotic. Looking to double from then snd probably settle for 150-175% of low

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   92 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.