SCOTTISH oil jobs will be lost and energy prices could soar if Scotland becomes independent, Conservative Energy Minister Michael Fallon has warned.

He said only the UK could finance the tax regime that drives North Sea Oil investment.

Speaking at a fringe event organised by Conservative Friends of the Union and the London Scottish Conservative Club, Mr Fallon said: "This month, the industry won tax reliefs worth £20 billion over 30 years against decommissioning costs. A separate Scotland could not afford that.

"It's not just the oil and gas industry that's in danger. The UK pays £500 million a year towards renewable energy in Scotland, 40% of total UK funding for just 10% of the population.

"A separate Scotland could not afford this scale of support. A vote for separation would halt investment in the North Sea, and leave Scottish taxpayers with huge bills or big increases in energy prices or both. Scotland's economy and Scottish jobs are at risk in next year's referendum."

The SNP accused the Conservative minister of "scaremongering" and said many small nations managed oil investment.

Scottish Conservative leader Ruth Davidson will accuse the SNP of offering uncosted "sweeteners" at a fringe event today. The SNP, she is expected to say, will do anything or say anything to lure a more voters onside in its bid to break up Britain.