THE MARKETS

Lobbying from the oil and gas industry saw the Chancellor use the Budget to reveal a doubling of tax breaks on certain small oil and gas fields. The new field allowances "should lead to exploration that would not otherwise have happened", the Treasury said. Less than 24 hours after the Budget, however, Premier Oil said it could now save up to $100m (£63m) in tax on fields it was likely to have proceeded with anyway. Speaking after posting full-year pre-tax profits of $142m, Simon Lockett, Premier's chief executive, and Tony Durrant, finance director, said the company hoped to save $25m in tax on a project already in the pipeline before the Budget. Premier Oil said it had taken the "tough" decision to go ahead with the Solan project prior to the Budget. It had anticipated reaching final decisions on three similar fields it was "very keen on" this year, which, pending policy details, the Budget allowances could also be applicable to. A spokesman for Premier Oil said the board's decision on Solan had been "subject to... the outcome of the Budget" and that the company plans to invest $1bn a year in the North Sea.