OIL industry leaders will warn today of "long lasting damage" to the sector unless the UK Government cuts taxes to help offset the impact of falling prices.

Malcolm Webb, the chief executive of industry body Oil and Gas UK, will use a high-level summit in Aberdeen to call for "meaningful action" from ministers.

He will warn "an unpredictable and harmful business environment" has put the sector "at great risk".

Oil and Gas UK is calling for urgent tax cuts amid falling global oil prices and rising costs. The body also wants a new oil and gas regulator to be set up.

Mr Webb will repeat the calls at a summit organised by Aberdeen City Council.

First Minister Nicola Sturgeon, Scottish Secretary Alistair Carmichael and Scottish Labour leader Jim Murphy will be among those taking part.

Mr Webb will tell them: "Britain's great oil and gas industry has over the last four decades overcome challenging geology and volatile commodity prices to provide hundreds of thousands of high skilled jobs, generate hundreds of billions of pounds in tax revenues and foster innovation.

"However the inconsistent and unpredictable government policy it has faced, now combined with sharply rising costs and a sudden drop in oil price, has dealt a blow which is doing real and potentially long-lasting damage.

"If we are to avoid lasting damage to this industry and its £35bn supply chain, now is the time for meaningful action.

"The industry is having to take tough decisions and implement necessary cost reduction and efficiency improvement measures.

"Alongside this, the Department of Energy must proceed as quickly as possible with the full establishment of the new Oil and Gas Authority, and HM Treasury must radically reduce the tax burden on this mature oil and gas province."

The price of crude oil has more than halved since hitting a peak of $115 per barrel last summer to less than $53.

Experts have warned that virtually no new North Sea projects are economically viable with the price below $60 per barrel and hundreds of jobs have been cut in recent weeks by oil firms including BP and Talisman Sinopec.

Speaking ahead of the summit, Ms Sturgeon said urgent tax cuts were required to give the industry "certainty and security" to protect jobs and investment.

Mr Murphy, who campaigned for the summit, renewed his call for the Scottish Government to create a £10 million resilience fund to help areas suffering an economic shock.