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Tax increase threatens major UK gas field

Wednesday 4th May 2011
British Gas owner Centrica is threatening to shut one of its major gas fields because of increased taxes.

Three fields in Morecambe Bay are being closed for maintenance for a month - and Centrica might not reopen one of them.

The reason is the new supplementary tax increase on oil and gas production which went up from 20% to 32% in the Budget.

"UK oil and gas producing fields are now subject to some of the highest levels of tax in the world," a spokesman told the BBC.

"At these higher tax rates, Morecambe's profitability can be marginal ... Accordingly, we may choose to buy gas for our customers in the wholesale markets in preference to restarting the field after planned maintenance."

Will these tax rises ultimately damage the UK economy? Tell us what you think using the comment section below

Mike Jones

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Added by Latoya on 2011-07-04 04:42:18

There’s a trerfiic amount of knowledge in this article!
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