THE UK Government has been accused of treating North Sea oil and gas as a “cash cow”, after the Chancellor failed to give extra support to the industry in the Autumn Statement.

Philip Hammond was condemned for an “inexcusable” lack of effort to boost investment and exploration in the sector, which has been hit by a wave of recent job losses.

Instead, he said he would “recommit” to the existing tax regime to provide stability.

The Office for Budget Responsibility (OBR) outlook revised the forecast for the UK’s North Sea revenues upwards for the first time since March 2011.

After flatlining because of low oil prices and tax breaks for the industry, revenue was predicted to be positive from 2017-18 onwards and up by £2.5bn by 2020-21.

The change was ascribed to the higher dollar price of oil and a weaker pound, with the price per barrel now expected to average £44 in 2017, compared to a forecast of just £29 in March.

The trade body UK Oil and Gas welcomed the Chancellor’s approach, but it was heavily criticised by the SNP and trade union leaders.

UK Oil and Gas Chief Executive Deirdre Michie said: “We are pleased to hear the Chancellor recommit to HM Treasury's Driving Investment plan. This sends a strong signal to investors that the Government recognises that the UK oil and gas tax regime needs to be predictable."

But Callum McCaig, the SNP's energy spokesman at Westminster, said the Tory Government had failed to honour pledges made in the March Budget on loan guarantees to secure critical offshore infrastructure, moves to encouraging exploration, and decommissioning

He said: “There has been no new support for the oil and gas sector in this Autumn Statement. The Tories have been using the North Sea - and the north-east of Scotland's economy - as a cash cow for decades and we are getting precious little in return.

"We all know that without greater investment and activity, we risk losing vital capacity and skills in the supply chain that will support production and ensure we realise the total value from maximising economic recovery from the North Sea.''

STUC general secretary Grahame Smith said: “The STUC was sceptical over the benefits of further tax reductions but the Chancellor could have established a North Sea Public Investment Fund to safeguard key infrastructure and support exploration. To say nothing at all is simply inexcusable."

SNP Finance Secretary Derek Mackay added: “It is deeply disappointing that the Chancellor has chosen not implemented the strong package of support needed for the North Sea, and affected communities, which continues to be impacted by low oil prices.”

The Scottish Secretary David Mundell was keen to highlight an extra £800m of capital funding coming to Scotland over the next five years because of extra investment in the rest of the UK.

He said: “The Autumn Statement will build an economy that works for everyone in Scotland and the rest of the UK.

“The rise in the National Living Wage means a well deserved pay rise for thousands of Scots, and the freeze in fuel duty will make it about £10 cheaper for drivers every time they fill up.

“If the £800m is used properly by the Scottish Government, this will make a real difference to productivity, jobs and growth.”

Scottish Tory leader Ruth Davidson added: “The SNP can also use this money to boost our creaking rail and road networks. There are no excuses not to act.

"It is also great news for Stirling that a new City Deal is on the cards - meaning that every city in Scotland now either has a deal, or is in negotiations to get one underway.

"The Chancellor also confirmed he will cut tax for middle-earners. Yet we also know the SNP government will deny this to people in Scotland. I appeal to Nicola Sturgeon to see sense and ditch this unfair tax grab.”

Mr Mackay said the Autumn Statement had laid bare the true cost of Brexit.

He said: “The real cost of Brexit has now been revealed – and it is a cost which will be paid through lower growth, lower tax revenues, higher borrowing, higher debt and higher inflation.

“Above all, this was a massive missed opportunity to end austerity.

“The Chancellor has failed to ease the punitive cuts that are hitting so many Scottish families. “Instead he has continued the damaging austerity that is slashing the budget for public services, hammering family finances and failing to revive the economy.”

The SNP government’s draft budget for 2017-18 is due to be published on December 15, far later than usual because it relies on data associated with the Autumn Statement.

The Chancellor’s announcement that he will in future have an autumn budget instead could have profound effects for the Scottish budget if it too falls in late November.

Moira Kelly, Chair of the Chartered Institute of Taxation in Scotland, said a late UK budget could “potentially resulting in inadequate time with which to scrutinise the Scottish budget”.

Scottish Labour leader Kezia Dugdale said Mr Hammond’s Statement could easily have been delivered by George Osborne: “Missed targets, lower growth and higher borrowing – that’s the record after six years of Tory government. The Tories’ reckless pursuit of a hard Brexit will only make things worse in the years to come. When the Scottish budget is published next month SNP ministers must not simply pass on these Tory cuts.”

Green MSP Patrick Harvie said: “Despite all the talk about people who are 'just about managing', the Chancellor is giving far more benefit to the richest households than to the rest. With power over income tax rates & thresholds, Scotland has an opportunity to take a fairer approach while also increasing revenues to tackle poverty and protect public services.”

Scottish Liberal Democrat leader Willie Rennie said: “The Chancellor’s announcements show that the true cost of Brexit is slower growth, higher inflation, higher borrowing and lower tax receipts. It puts public services across the country at risk.”

John Dickie, Director of Child Poverty Action Group in Scotland, said the Statement was “hugely disappointing” for those expecting proper support for ‘just about managing’ families.

He said: “The Chancellor’s lowering of the universal credit taper is a sticking plaster to family budgets that are haemorrhaging losses imposed on them by his predecessor’s budgets.”

Lindsay Gardiner, regional chair for PwC in Scotland, warned increasing the Living Wage to £7.50 an hour could be a "burden" to many small businesses.