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- Salmond attacked as North Sea oil revenue plummets
Danny Alexander, chief secretary to the Treasury, launches withering attack on leader of SNP for overstating ecoonomic forecasts as oil income slumps
Oil drilling activity in the North Sea has fallen off this year Photo: AFP
By Andrew Critchlow, Business News Editor
8:14PM BST 29 Aug 2014
240 Comments Alex Salmond’s economic policies based on North Sea oil revenues being able to support an independent Scotland have been attacked by Danny Alexander, chief secretary to the Treasury.
His critique comes as HMRC figures released yesterday show that revenues from North Sea oil and gas have fallen significantly to £4.7bn in 2013-14, down from £6.1bn the previous year.
“These figures are another body blow to Alex Salmond’s credibility on the economy and public services,” said Mr Alexander. “They add to the overwhelming evidence that Scotland can better afford the quality public services it deserves by staying as part of the UK, and not by separating. Mr Salmond is guilty of promising the Earth, but not having the oil and tax revenues to pay for it.”
According to Mr Alexander, the Scottish government has over-forecast oil and gas revenues by £5bn in the past two years. “Despite this, the Scottish government’s plans for independence rely on generating more than double the amount of North Sea tax forecast by the independent Office for Budget Responsibility,” said Mr Alexander.
The HMRC data come after a report by Deloitte showed that exploratory drilling in the UK continental shelf fell by 58pc in the second quarter, with just seven new wells sunk, compared with 17 wells in the same period a year earlier.
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It emerged in February that production from the North Sea could fall this year to its lowest level since the early 1970s.
A report by the Organisation of Petroleum Exporting Countries suggested North Sea output could drop to 800,000 barrels per day (bpd) of crude.
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