Appendix 2: 2005 Pre-Budget Report and 2006 Budget

Costs to Industry of the 2005 Pre-Budget Report and 2006 Budget

According to HM Treasury, the measures announced since December 2005 will cost the upstream oil and gas industry an additional £0.9 billion in taxes in 2006/07, climbing to around £2.4 billion per year additional tax in 2007/08 and 2008/09. The benefit to industry from the RFES is estimated at £5 million, which will be noticeable in 2008/09.