Osborne cuts Oil Supplementary Charge by 2%

In the half-yearly budget update, Chancellor George Osborne acknowledged the difficulties the oil and gas industry is facing due to falling oil prices – and responded by reducing the Supplementary Charge from 32% to 30%.

George OsborneOsborne said: “There is record investment this year in the North Sea, but the lower oil price clearly presents a challenge to this vital industry.

“But I can tell the House today that we will go ahead with an immediate reduction in the rate of the Supplementary Charge from 32% to 30%.

“We will expand the ring fenced expenditure supplement from 6 to 10 years. And we are introducing with immediate effect a new cluster area allowance. This demonstrates our commitment to the tens of thousands of jobs that depend on this great British industry.”

Danny Alexander, Chief Treasury Secretary, will set out the full proposals in Aberdeen today.

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