Subsea UK, the body which champions the UK’s subsea industry, has welcomed the measures in the budget.

George Osborne has yesterday delivered his sixth budget as chancellor, and the last of the current Parliament.

The subsea industry generates annual revenues of £9bn and supports around 55,000 jobs across the country.

Bill Edgar, chairman of Subsea UK, said: “All the measures combined are welcome, particularly the reduction in petroleum revenue tax. A temporary suspension of the supplementary charge for a period of at least two years is what was really needed to get things moving again in the low oil price era. However the reduction in supplementary charge combined with the investment allowances should stimulate new field developments where subsea engineering will play a vital role.

“Lower PRT should see increased investment in brownfield activity to maximise production and this is good news for the subsea inspection, repair and maintenance sector which has been feeling the pain in recent months. The seismic programme proposals will provide valuable information on areas of untapped potential which will largely be unlocked by subsea technology and expertise.

“It is now down to the industry to play its part within this context by working co-operatively, collaboratively and innovatively to get the cost base under control while maintaining reasonable margins so that jobs and investment in the supply chain are protected. I am confident our highly imaginative and pioneering subsea sector will step up to the plate.”