North Sea oil and gas costing the UK taxpayer for first time as oil price falls

THE North Sea oil industry has cost taxpayers more than

£300 million over the past financial year in the wake of plunging oil prices and decommissioning rebates.

Taxes paid by oil and gas companies fell in 2016-17 because of lower oil prices, continuing investment and cuts in tax rates, according to the figures from HM Revenue & Customs.

Tax rebates issued to companies as relief on the costs of decommissioning and other expenditure outweighed the tax paid for the first time. As a result, UK Government revenues from oil and gas production declined to minus £312m in 2016-17, compared with £151m in 2015-16, a report by HMRC shows.

The oil industry has been a huge contributor to the Exchequer for decades and as recently as 2011-12 it contributed almost

North Sea oil has contributed £190bn so far.

£10.9 billion in tax. Revenues have fallen sharply each year since, however, and last year were at “their lowest since records began in 1968-69”, the tax office said.

The industry has contributed £190bn in taxes over its lifetime.

But, the latest figures

underline how it risks becoming a burden as more North Sea fields come to the end of their lives and decommissioning of old platforms increases.

The Oil and Gas Authority estimated last week the eventual bill for decommissioning was likely to be almost £60bn. A NEW snorkel trail for tourists has been created in the Outer Hebrides to help visitors and local people experience life below the waves.

The North Harris Snorkel Trail showcases six stunning beaches and bays where beginner and advanced snorkellers can see an impressive variety of marine life including crabs, jellyfish and starfish.

The self-led trail has been developed in partnership with the North Harris Trust as part of the Scottish Wildlife Trust’s Living Seas programme.

It is supported by the Esmée Fairbairn Foundation and the National Marine Aquarium, and has been inspired by the North West Highlands Snorkel Trail, which was launched by the Scottish Wildlife Trust in 2016.