MPs today criticised the Coalition Government's "opportunistic" £10 billion raid on North Sea oil profits, warning it damaged investor confidence.

UK ministers must avoid similar moves or risk the future of a vital sector, members of the influential Commons Energy and Climate Change Committee said.

The tax hike triggered outrage across the industry when it was announced in the March Budget.

Tory Chancellor George Osborne defended the move, saying that the industry could afford to pay more from its record profits, and that the money would be used to help cut petrol prices at the pump.

But oil bosses accused Coalition ministers of springing the levy on them and complained the tax hike left many fields unprofitable. Within days experts had warned the move could endanger up to 40,000 current and future jobs in the industry in Scotland.

A number of energy giants also suspended plans to invest in the North Sea while others threatened to put their money in other parts of the world.

Within weeks the Westminster Government had moved to appease the growing anger.

The Treasury announced plans to increase allowances given to oil firms, designed to encourage investment in more mature fields.

In response, Statoil, the Norwegian energy giant, said it would restart work on its Mariner field.

However, industry leaders, who face a £10bn bill over the five years of this parliament, have warned it will take years for trust to be regained in the Government.

In a report into energy security, MPs said ministers should “not make opportunistic raids” on North sea oil and gas producers.

“The Government must build a more constructive relationship if it is to restore industry confidence,” they added.

Tom Greatrex, the Labour MP for Rutherglen and Hamilton West, who sits on the committee, described the report as “scathing”. He also described as “short-sighted” a Government decision not to consult the industry before the Budget.

“As the report makes clear, oil and gas production in the North Sea is in decline, and has been for a number of years,” he said.

“That is why it is now even more important than ever for the Government to work with the oil and gas sector to secure long-term investment.

“To maximise production, the government must work with the oil and gas sector, not against it.”

Mike Weir, the SNP Energy spokesman, said the committee was right to criticise ministers.

“Instead of regarding Scottish oil as a cash cow, the Tory-LibDem Government must realise how important our offshore industry is for Scottish jobs and for the economy of the north-east in particular,” he said.

The report also calls on Tory-LibDem ministers to double the UK’s gas storage to help keep the lights on.

The UK can store only 14 days supply, compared with France’s 87 days and Germany’s 69 days, MPs found.

The committee also warned the UK Government not to rely on power companies to deliver the message to save energy, as consumers did not trust them.