North Sea oil and gas firms were left reeling after the Chancellor snubbed their calls for an end to the windfall tax that an industry leader has warned could kill off the industry within five years.

Rachel Reeves made no mention of the windfall tax in the Budget speech she delivered following a forceful campaign by critics to persuade her to ease the financial burden on firms.

Ms Reeves caused consternation last November when she increased the rate of the tax in her first Budget, in a move that left firms paying a headline rate of 78%.

Some major North Sea players have slashed investment in the North Sea following the chancellor’s move amid warnings by experts that job losses could rise to 1,000 a month.

However, Treasury officials confirmed after Ms Reeves’ speech that the tax, for

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