Price rises ruin the oil tax windfall

In the Pre-Budget Report, the Treasury has admitted tax income from North Sea revenues is expected to come in at £13.2 billion in the fiscal year to next April, more than the £9.9 billion predicted in the Budget in March.

It said the tax take had been inflated by oil reaching nearly $150 a barrel in July.

But the Treasury said: "There is no significant windfall to the government."