A £5 million UK Government investment to boost the North Sea oil and gas sector has been welcomed by the Scottish Conservatives.
New exploration in the North Sea will be supported by a £5m UK Government fund for 2018/19, Philip Hammond announced today during a visit to Aberdeen and Dundee. The funding will be used by the Oil and Gas Authority to survey under-explored areas of the UK Continental Shelf to find potential new deposits.
Philip Hammond said: “The oil and gas industry remains vital for the Scottish economy and the UK as a whole. The £5m funding I am announcing will help find new exploration opportunities, boosting prospects for jobs in Aberdeen and beyond. This continues the UK Government’s extensive package of tax and funding support for the industry and the wider Scottish economy.
The announcement came on the same day that the Oil and Gas Technology Centre in Aberdeen, which the Chancellor visited and is part-funded by the UK Government, released new information showing new technology is unlocking 3.5 billion additional barrels of oil and gas from the North Sea.
Scottish Conservative leader Ruth Davidson said: “The north east has faced tough times recently but there are still plenty more years left for the oil and gas industry.
“Encouraging exploration to identify potential new fields is vital and it is important to see this announcement of support from the Chancellor today.
“Every Scottish Conservative MP and MSP in the north east is determined to help secure a long-term future for the oil and gas sector – and we will be using the Chancellor’s visit to press this case.”
Earlier in the day, the Chancellor met local businesses in Dundee to discuss how UK Government tax support has helped them grow, including reducing corporation tax cuts and introducing creative sector tax relief. The waterfront regeneration underway in Dundee includes the stunning new V&A museum currently under construction, supported by £5m UK Government funding. The highly-anticipated museum is expected to open to the public in early 2018.
Philip Hammond also visited Dundee University life sciences complex, which is a world leader in areas including drug discovery. It has received more than £20 million in UK Government funding in recent years and is now ranked highly on global ratings for its scientific excellence and impact of its research. He also reaffirmed the UK Government’s commitment to a Tay Cities Deal, and paid tribute to life sciences and the creative sector in Dundee.
He commented: “I’ve seen today how Dundee has benefitted from our life sciences and creative sector funding. I now look forward to progress being made on the Tay Cities Deal, which will follow the £1 billion already committed by the UK to Scotland’s City Deals so far.
“We will continue using the UK’s broad shoulders to provide Scotland with the skills and support it needs to thrive in the future.”
Ruth Davidson added: “The Scottish Conservatives are fully behind a new Tay cities deal and it’s great to see the Chancellor giving it a vote of confidence today.
“There are huge opportunities for Dundee and the whole Tay region in life sciences and the creative sector.
“I want to see both the UK and Scottish governments doing all they can to make this a real Scottish success story.”
In Aberdeen, he met oil and gas industry representatives to discuss how the £5m funding could help employment and the economy in the region. The UK government has given substantial support to the oil and gas sector, including a £1.3 billion package of tax cuts at Budget 2015 and a further £1 billion package at Budget 2016.
The UK government is also backing plans to establish Aberdeen as a global leader, creating skilled jobs and exporting this advanced knowledge to other countries. Tax relief is in place on decommissioning, covering around 40% of the total cost for UK companies and forecast to be worth around £24 billion between now and the 2050s. The OGA have also committed to reduce the overall costs for industry.