Taxman will collect an additional £1.6bn from the North Sea over the next five years after oil prices surge
The taxman will collect an additional £1.6billion from the North Sea over the next five years after oil prices surged.
The Government is expected to make £8.5billion from the resource-rich region between 2021 and 2026, the Office for Budget Responsibility (OBR) said in its latest outlook.
This is up from the £6.9billion which was previously expected by the Treasury watchdog.
Light relief: The Government is expected to make £8.5billion from the resource-rich region between 2021 and 2026
It will include an increase of £500m this year alone – from £900m to £1.4billion. The Treasury’s oil and gas revenues are calculated by adding together offshore corporation tax and petroleum revenues tax.
The boost to the Government’s coffers comes as oil prices have rocketed from $51 a barrel at the start of this year to almost $85 last night.
The value of crude tumbled during the worst of the Covid pandemic last year, with the Brent benchmark falling as low as $19 and US oil even trading in negative territory.
But the resurgence in the global economy and resumption of international travel have pushed up demand, while producers have curbed supply to prop up prices.