UK to decrease rate of supplementary charge from 32% to 30%

The UK government confirmed on Wednesday its commitment to support the North Sea oil and gas industry, announcing a package of measures in its Autumn Statement to address the current problems.

‘Receipts are also growing less quickly than the economy in the near term due to further falls in revenues from North Sea oil and gas, in part reflecting recent declines in global oil and gas prices, and financial institutions carrying forward losses’ the Government wrote in the Autumn Statement.

The coalition led by Prime Minister David Cameron is also promoting shale gas. 

‘The government will … provide a new £5 million fund to provide independent evidence directly to the public about the robustness of the existing regulatory regime. This will also ensure the public is better engaged in the regulatory process.’ 

Cameron also plans to set up a long-term investment fund from tax revenues from shale for the North and other areas with shale gas developments.

Over the last weeks, the Cameron government’s "dash for (shale) gas" has suffered a blow at the hands of its own Chief Scientist. 

In September, the UK government gave the green light to a change in legislation for deep underground drilling, allowing companies to carry out hydraulic fracturing without the permission of the landowners.  

IMMEDIATE TAX REDUCTION

UK Chancellor of the Exchequer George Osborne also pledged to announce additional policy changes in the near future, explaining that the government will proceed with an immediate 2% reduction in the rate of the Supplementary Charge from 32% to 30%.

"I can tell the House today that we will we go ahead with an immediate reduction in the rate of the Supplementary Charge from 32 percent to 30 percent, we will expand the Ring-Fenced Expenditure Supplement from six to 10 years and we're introducing with immediate effect a New Cluster Area Allowance. And this demonstrates our commitment to the tens of thousands of jobs that depend on this great British industry” Osborne said, delivering his Autumn Statement.