North Sea oil chiefs in tax talks with Morgan

LEADING figures in the North Sea oil and gas industry are meeting Financial Secretary to the Treasury Nicky Morgan today for talks on future tax treatment for the sector.

Chancellor George Osborne pledged to review the tax regime of the North Sea oil and gas industry. Picture: PA

Chancellor George Osborne pledged in this year’s Budget to review the tax regime of the industry to “make sure it is fit for the purpose of extracting every drop of oil we can”.

Morgan will meet business leaders in Aberdeen for the first time since March’s announcement.

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The forum will outline the scope and objectives of the review of the fiscal regime - which will look at the longer term tax treatment of the industry, including field allowances.

Heads of industry are being invited to set out their priorities for how the remaining resources can “best be exploited”. The review will report its initial findings at the Autumn Statement.

Speaking before the fiscal forum, Ms Morgan said: “The Government is committed to supporting investment in the oil and gas industry, a vital sector that provides jobs and growth across the United Kingdom.

“Today’s fiscal forum will be a positive start to the review of the fiscal regime for oil and gas, and I look forward to working with the sector on the long term future for the industry.”

She will also visit the Glen Garioch distillery, to discuss the budget announcement to freeze duties on spirits as well as stopping off at Aberdeen harbour for talks on the impact of increased oil and gas investment.