Upstream industry group Oil & Gas UK said October 29 it welcomed that day's commitment by the UK government to maintain headline tax rates in its 2018 Budget.

Finance minister Philip Hammond said the current headline tax rate for the sector will continue, and also stated that the UK government will launch a call for evidence on its plans to make Scotland a global hub for decommissioning, said Oil & Gas UK.

Hammond's "commitment to fiscal stability is welcome recognition of the hard work by industry to encourage recovery following one of the most testing downturns in its history. With reduced costs, competitive fiscal terms and improved operational performance, the UK continental shelf is becoming an attractive investment proposition," said Oil & Gas UK CEO Deirdre Michie. 

The group recently said that 11 new production projects have been announced by companies this year – more than in the last three years combined - with more expected in the coming months. 

Michie also said that the decommissioning market in the North Sea is forecast to grow steadily and is likely to be worth £1.8bn/yr on average over the next decade.  Commenting on the government's call for evidence on its plans to make Scotland a global hub for decommissioning, she added: "As decommissioning activity is predicted to grow, the UK supply chain has a major opportunity to develop world-class decommissioning capabilities. We look forward to informing this exercise with our expertise and ensuring that we can maximise opportunities in decommissioning, while continuing our focus on maximising economic recovery.”

Alan McCrae, leader of industry for oil and gas at PwC UK, also remarked: "The measures announced in the Budget largely confirm earlier proposals and this will be warmly welcomed by the oil and gas industry. The introduction of a transferable tax history mechanism for oil and gas companies should help facilitate the numbers of deals taking place, and help breathe new life into the sector by making it more attractive to new investors. This will help protect and create jobs, and increase investment in both the industry and local economy."

Hammond also made available an extra £0.5bn ($641mn) for government preparations ahead of the UK's exit from the European Union, scheduled for March 29 2019.