Chancellor George Osborne is due to announce his proposals during his budget speech next month.
Will Scargill, GlobalData’s upstream fiscal analyst, says that barring a significant recovery in oil prices, the next government – or coalition – will also likely move to further improve the UK fiscal regime’s attractiveness.
He added: “Any changes introduced by a [future] conservative government are likely to be tempered to an extent by its deficit-reduction targets, and it remains to be seen whether the Labour party will propose any incentives for the industry during the election campaign.
“However, with a hung parliament a strong possibility, the smaller parties’ policies may prove significant. In particular, the Scottish National Party is likely to push for substantial tax cuts, as well as uplift and exploration-relief incentives, similar to those in Norway.”