A most interesting number

£334 billion net tax revenues for the government from the oil and gas sector
since 1970-71

Helps to explain why we didn’t put it all into a sovereign wealth fund as Norway did.

Simply not a large enough number in relation to UK public finances or economic size.

Yes, yes, obviously, that’s a non-inflation adjusted number, doesn’t include what might have been earned on any investment fund etc. But still. The Norwegians were at times getting 30% of GDP from the oil. The UK peaked at what, 3%? Summat like that.

6 thoughts on “A most interesting number”

  1. It may have been only 3% of GDP (I’d have to look it up, refresh my memory), but at the time – 40yrs ago, North Sea Oil was the difference between life and death. It saved us, afforded the country breathing space.

  2. i wonder how much we have given away to foreigners in the past decade alone? For all those people who think these revenues should have been transformational in some way, ask why we then give away colossal sums so others can go to the Moon or acquire a nuclear program.

  3. We were happy to not pay some much taxes elsewhere because of North Sea Oil.
    Can hardly complain now that for decades income tax has been lower than it should have been.

  4. A sovereign wealth fund might have been a good idea anyway. Better than spunking away everything on doubious government programs. It might usefully get politicians accustomed to not spending two pennies for every one that comes in.

  5. I cannot see how a government which has routinely run a deficit for most of the past 40 years would bother with a Sovereign Wealth Fund.

  6. “Martin
    January 25, 2019 at 3:20 pm

    We were happy to not pay some much taxes elsewhere because of North Sea Oil.
    Can hardly complain now that for decades income tax has been lower than it should have been.”

    Or, rather – your taxes are just as high as they would have been without but the government expanded the welfare state and government power using that money.

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