Alex Salmond criticises ‘damaging’ oil tax

Mr Salmond said the Budget measure, which will see an extra £2bn tax on oil and gas production, could cost 10,000 jobs.

He will discuss alternatives to the “damaging” windfall tax and call for wider economic powers at talks with George Osborne.

It is their first meeting since Mr Salmond’s Scottish National Party swept to victory in the Holyrood elections earlier this month.

Mr Salmond was formally sworn in as First Minister for a second term last week after the SNP party netted 69 of the 129 available seats, securing an unprecedented majority.

I will also urge the Chancellor to rethink the Treasury’s recent damaging tax hike on North Sea oil and gas. We must work to support investment in the energy sector rather than to put it at risk. Alex Salmond, Scotland’s First Minister

Mr Salmond said he was keen to “make progress in improving the Scotland Bill” and ensure it has “real economic teeth”.

He said: “I will also urge the Chancellor to rethink the Treasury’s recent damaging tax hike on North Sea oil and gas. We must work to support investment in the energy sector rather than to put it at risk.

“I will offer alternative proposals which demonstrate how it could be possible to focus the tax increase on those who are taking excess profits out of the North Sea, while still incentivising those companies prepared to invest.

He will also discuss sustainable energy methods when he meets Energy Secretary Chris Huhne during his two-day visit.

“The new Scottish Government will also continue to press for unfettered access to Scotland’s £200m fossil fuel levy funds to support green energy development.

“That is Scotland’s money, currently and ludicrously locked away in a London bank account, which must now be released,” he said.

Mr Salmond will meet and address members of the media at the Foreign Press Association this afternoon before meeting with Deputy Prime Minister Nick Clegg on Tuesday.