The fiscal regime is a significant lever in driving and attracting investment into the UK North Sea. The basin has a bespoke fiscal regime, which in the past has been flexed by governments in place to maximise the Exchequer’s tax take from this national resource. Previous adverse fiscal changes often were to the detriment of the long-term outlook for and investment into the basin. More recently the engagement with key government authorities is more collaborative and inclusive, leading to better decision making on the fiscal front.
The Fiscal Policy Forum is a key tool to members of Oil & Gas UK to drive the evidence-based development of fiscal policies and sustain much needed fiscal stability. It achieves this through:
• Leading and stimulating collective action to sustain and, where identified improve, a globally competitive fiscal regime that is able to attract and drive investment across the industry;
• Developing and securing fiscal policies that encourage MER UK through the full economics life cycle;
• Sharing and providing insight to assist members to manage collective fiscal risk, promote industry values and create opportunities; and
• Facilitating coherent engagement with government authorities to drive the policy agenda and provide evidence-based facts.
• Inform, share, test policy positions and strategy on fiscal and economic issues at industry level:
o Provide a forum for members to share and discuss fiscal policy ideas, opportunities and potential solutions to issues;
o Discuss direction of travel on potential policy measures, which contribute to a competitive fiscal regime;
o Where members agree that an identified policy should receive prioritisation, members will support with evidence to enable a high-impact case for change; and
o Aid in the assessment against financial, legal and fiscal constraints within which the Government operates.
• Consider industry-specific issues independently from regulators.
• Conduit of information re OGUK’s stakeholder engagement (HMT, HMRC, OGA, BEIS, but also ministers, etc) and internally to other forums (for example Exploration Managers, Commercial Managers, Legal, etc) and the Councils and Board.
• Overview of the landscape of the UKCS, competitiveness, investment levels, deal activity, etc.
• Commission Task Finish or Work Groups where necessary to pursue specific issues or undertake such projects as are deemed necessary to support the forum’s aims.
• OGUK will actively monitor to ensure no duplication or inefficient overlap with other existing initiatives.