Scottish Labour seizes on OBR figure for expected tax, cut from £37bn to £2bn, as Nicola Sturgeon repeats aim for maximum fiscal independence
The Office for Budget Responsibility has warned that North Sea oil and gas could generate just £100m a year in tax in future after it dramatically slashed its forecasts for North Sea tax receipts.
In a significant blow to the Scottish National party’s quest for full fiscal autonomy, the OBR said it now believed the sector could only generate a total of about £2bn in tax revenues over the 20 years from 2020 to 2041, compared with its forecast last year of £37bn for the same period.
Related: Scottish government may consider income tax rise after £107m budget cut
Related: North Sea oil price slump puts industry confidence at an all-time low