Blow to aim of Scotland fiscal autonomy as North Sea oil tax forecast slashed

Scottish Labour seizes on OBR figure for expected tax, cut from 37bn to 2bn, as Nicola Sturgeon repeats aim for maximum fiscal independence

The Office for Budget Responsibility has warned that North Sea oil and gas could generate just 100m a year in tax in future after it dramatically slashed its forecasts for North Sea tax receipts.

In a significant blow to the Scottish National party's quest for full fiscal autonomy, the OBR said it now believed the sector could only generate a total of about 2bn in tax revenues over the 20 years from 2020 to 2041, compared with its forecast last year of 37bn for the same period.

Related: Scottish government may consider income tax rise after 107m budget cut

Related: North Sea oil price slump puts industry confidence at an all-time low