In the Budget statement in 1983 the Chancellor of the Exchequer announced changes to the taxation in the oil industry.

He noted that Government had a responsibility to compare the likely returns from future development both to the Government and to the industry, and had to ensure that the country obtained the appropriate benefit.

As a result of the application of royalties for future developments outside the southern basin of the North Sea, the marginal tax rate for a field paying petroleum revenue tax will be reduced from 89.5 to 88 per cent.

[2] In response to the oil price fall in 1986 the Government reduced taxation further by enacting the Advance Petroleum Revenue Tax Act 1986.

[2] The Petroleum Royalties (Relief) Act 1983 (1983 chapter 59) received Royal Assent on 21 December 1983.