Forecasts for the UK's North Sea tax receipts have been halved for the next financial year, but the recent oil price plummet could have an even more drastic impact.
Estimates for North Sea oil revenues have been upwardly revised by an average of £1.2billion per year by the Office for Budget Responsibility.
Revenues from UK oil and gas are expected to be negative for the next five years, according to the Office for Budget Responsibility’s forecast.
Nicola Sturgeon has faced calls to set up a Scottish version of the Office for Budget Responsibility as Labour said forecasts on oil revenues were out by 6,000%.
The UK Government made a loss from North Sea oil and gas in the first six months of this year, according to reports. According to The Herald, the revenues were more than cancelled out by repayments to producers between the months of April and September. While a total of £248million was collected from the industry in both corporation tax and petroleum revenue tax (PRT) around£287million was handed out in rebates following the downturn.