http://news.bbc.co.uk/1/hi/scotland/4537660.stm
Oil giant Shell has cut its plans for North Sea exploration, blaming Chancellor Gordon Brown's tax hikes for the move.
The company had planned to hire three drilling rigs, but has decided to reduce the number to two.
Shell said it took the decision after a review prompted by the chancellor's decision to increase a charge on profits from 10% to 20%.
The Treasury said the charge compared favourably with tax regimes abroad.
However, the Scottish National Party warned that the move would cost jobs in Scotland.
Leader Alex Salmond said: "The chancellor's tax grab on the North Sea was a crude attempt to hide the black hole he has created in Britain's finances, and the cost is now being felt here in Scotland.
We are disappointed by the government's recent decision and we are continuing to evaluate the impact that the proposals might have on our business
Shell spokeswoman
"This decision by Shell will have a knock-on effect throughout the North Sea supply chain.
"It will cost jobs and threaten the viability of many oil-related businesses in Scotland."
Mr Brown announced the tax rise in his pre-budget statement earlier this month.
A Treasury spokesman said: "The decision was made against a backdrop of a structural change in the price of oil and increased profits for the oil companies.
"It now reflects greater fairness for the British taxpayer on what is clearly a national resource and yet still compares favourably with other international tax regimes."
Oil giant Shell has cut its plans for North Sea exploration, blaming Chancellor Gordon Brown's tax hikes for the move.
The company had planned to hire three drilling rigs, but has decided to reduce the number to two.
Shell said it took the decision after a review prompted by the chancellor's decision to increase a charge on profits from 10% to 20%.
The Treasury said the charge compared favourably with tax regimes abroad.
However, the Scottish National Party warned that the move would cost jobs in Scotland.
Leader Alex Salmond said: "The chancellor's tax grab on the North Sea was a crude attempt to hide the black hole he has created in Britain's finances, and the cost is now being felt here in Scotland.
We are disappointed by the government's recent decision and we are continuing to evaluate the impact that the proposals might have on our business
Shell spokeswoman
"This decision by Shell will have a knock-on effect throughout the North Sea supply chain.
"It will cost jobs and threaten the viability of many oil-related businesses in Scotland."
Mr Brown announced the tax rise in his pre-budget statement earlier this month.
A Treasury spokesman said: "The decision was made against a backdrop of a structural change in the price of oil and increased profits for the oil companies.
"It now reflects greater fairness for the British taxpayer on what is clearly a national resource and yet still compares favourably with other international tax regimes."
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