Wednesday, 9 July 2008

Oil be back!

North Sea Oil.

Oil & Gas UK's 2008 Economic Report has been published, and it predicts a massive increase in taxation flowing to the Treasury from North Sea activity - in spite of the downturn in production caused by Labour's taxation regime.

In 2007 the industry paid £7.8 billion in direct taxes to the London Treasury. In 2008 the industry predicts a tax bill of around £15 billion with a further £5 billion to £6 billion in tax receipts added from UK supply chain activity, primarily from Corporation Tax and payroll contributions.

That's a tax take to the Treasury of at least £20 billion (£20,000,000,000) this year.

Interestingly, the industry predicts this tax take from an average price of $110 per barrel. Brent Crude is currently sitting at $142.31 per barrel - and the tax take increases as oil prices go up.

That's a lot of money!

3 comments:

gerry mac said...

I read earlier that the treasury say there is no windfall because as the downturn bites people spend less meaning the overall tax take is the same.
i'm losing count here. Is this the 3rd or 4th recession that the Scots have had to bail out the UK?

Jim MacFarlane said...

In which case, could someone please suggest to them that if they reduce the tax on my fuel, then I'll be more than happy to spend that saved money on something else, more pleasant probably, and gladly let them have the tax from that too.
(Wait a minute! that doesn't actually add up does it? ...)

Jim

PS Really enjoy your site Calum, especially the shorter postings.

Do you know the 7 plus or minus 2 rule?

Calum Cashley said...

Aye, the excellence of brevity...