UK cabinet in Scotland backs energy report
PRIME Minister David Cameron will today pledge to maximise the economic benefits from North Sea oil and gas and give the go-ahead for a new regulator, as the UK government bolsters its argument against Scottish independence ahead of the referendum.
At a cabinet meeting in Scotland – the second time the entire UK cabinet will have met in the country in 90 years – he will accept and fast-track all the main recommendations of oil veteran Sir Ian Wood’s new report into maximising North Sea revenue, which it argues could contribute up to £200bn over the next 20 years. New measures announced today include changes to the way production licences are awarded and an independent regulator to supervise licensing.
While Cameron argues the oil and gas industries would be best served by Scotland remaining in the UK, Scotland’s first minister Alex Salmond – who is hosting a separate cabinet meeting – claims Scottish independence would benefit it more.
Tax revenues from North Sea oil and gas fell by more than 40 per cent in 2012-13, equating to £4.7bn. The government believes that while the UK can absorb this volatility, it would dramatically affect a small country’s budget.