Price rises ruin the oil tax windfall
11 April 2012
A £3.3 billion North Sea tax windfall has been wiped out by the negative effects of inflation on the economy caused by the soaring price of oil and gas, the Treasury has admitted.
In the Pre-Budget Report, the Treasury has admitted tax income from North Sea revenues is expected to come in at £13.2 billion in the fiscal year to next April, more than the £9.9 billion predicted in the Budget in March.
It said the tax take had been inflated by oil reaching nearly $150 a barrel in July.
But the Treasury said: "There is no significant windfall to the government."
