Chancellor Rishi Sunak is being urged to release billions of pounds of tax relief for oil rig decommissioning to save jobs in the north east of Scotland.
SNP MP Stephen Flynn called for the UK government to move urgently to open up a portion of the £12.9 billion it holds for decommissioning tax relief.
The Aberdeen South MP said livelihoods are on the line unless incentives for decommissioning work were offered to the industry.
HMRC estimates that it will pay out around £12.9 billion to operators in taxes previously collected trough decommissioning tax reliefs.
Despite job losses in the sector due to coronavirus and the economic crisis, the Treasury has yet to take decisive action to support the sector.
Flynn said: "It is simply not acceptable for the UK Government to sit back and do nothing. By releasing a fraction of the £12.9 billion it holds against decommissioning tax rebates, with the stroke of a pen the Treasury could save hundreds of jobs in Aberdeen and the North East.
"This is money that they will have to spend in the years to come and it begs the question if now is not the right time to use it, then when is?
"The perfect storm of coronavirus and the oil price crash has put livelihoods and the very future of the industry on the line. The stakes could not be higher and the Chancellor simply cannot continue to sit on his hands."
The Aberdeen South MP called on the UK government to work with Decom North Sea and the wider industry to find a mechanism that would release this money.
He said: “I’ll be writing to the Chancellor on the matter. After all, these are revenues raised in Scotland and should be brought forward to support the sector and jobs now.”
.png?w=600)
