GEORGE Osborne has ruled out any immediate help for the beleaguered North Sea oil and gas industry but again dropped a large hint that tax cuts were in the pipeline for the March 18 Budget.

Stewart Hosie, the deputy SNP leader, said the oil industry believed the "softening of the oil price" had highlighted the underlying problem in the North Sea, which was the high cost of doing business there. This, he told MPs, was driven by an up to 81 per cent tax on production.

The Dundee MP urged the Chancellor that instead of waiting until the Budget, he should "take urgent action on investment allowances and(introduce) a cut to the supplementary charge".

In response, the Chancellor stressed how he and his Treasury colleagues were very aware of the pressure on oil producers and had already acted such as cutting the tax on profits.

But he made a political point, noting: "What he calls the softening of the oil price would have had done disastrous damage to the finances of an independent Scotland. Their projections for their oil revenue were out by almost threefold. It's a reminder of the strengths of the United Kingdom that we can bear pressure like a falling or indeed a rising oil price across the entire UK."

Cathy Jamieson, the Shadow Treasury Minister, pressed Mr Osborne, pointing out how industry and economic experts had warned that thousands of jobs in the oil sector were now at risk.

Stressing how both the UK and Scottish Governments seemed to be "passing the buck" rather than taking the urgent action that was needed, the Kilmarnock and Loudoun MP called on him to give a commitment to "immediately bring forward tax measures to support the industry as we have called for rather than delaying for another seven weeks until the Budget".

But the Chancellor replied: "We have already cut the supplementary charge, which came into effect at the beginning of this year, we have launched a consultation on an investment allowance, we meet regularly with the industry, indeed we met with them last week; they think the Budget is, of course, the appropriate time to make further announcements if there are further announcements on the North sea oil and gas tax regime."

Mr Osborne insisted the oil sector had his assurance the Coalition would "do everything we can" to support it during a difficult time, noting how "we have got to do further things over the coming year".

He added: "We are absolutely determined that this brilliant industry has a brilliant future."