Scottish independence: Report claims UK oil forecasts ‘too pessimistic’
Future North Sea oil and gas revenues could be six times higher than a UK economic watchdog has forecast, according to a report.
The claim was made by N-56, which describes itself as an “apolitical business organisation”.
The Scottish and UK governments have repeatedly clashed over the future of the oil and gas industry, particularly around forecasts from the OBR on the amount of cash it expects to be raised from the North Sea.
Responding to the report, a UK Treasury spokesman said: “The Scottish government’s claim that Scotland’s public finances will be boosted by separation are based on inflated oil and gas forecasts.
“Every independent expert agrees that North Sea oil and gas revenues are volatile and will ultimately decline.
“The Scottish government’s own stats show that over the past two years, North Sea tax revenues were around £5bn less than the Scottish government’s lowest estimate.
“The North Sea is a maturing basin and it needs valuable incentives from the Exchequer to sustain investment, which the UK, with its broad and diverse tax base, is able to provide.
“It is not credible for the Scottish government to say they would sustain current tax incentives for the oil industry and set up an oil fund, while cutting corporation tax below the UK level and increasing welfare benefits.
“How would they fund all these tax cuts, ensure increase public spending and put money aside for an oil fund?”
Source: BBC
