Plans to increase taxes for the North Sea oil and gas industry have come under a fresh attack.

The Scottish Council for Development and Industry (SCDI) said the new tax regime was unstable and out of touch with economic reality.

The organisation also claimed that Chancellor Gordon Brown's proposals were causing serious damage to investor confidence.

The budget measures deliver longer-term stability

Government spokeswoman

However, the UK Government said the measures were designed to strike the right balance between promoting investment and taking an adequate share of profits.

The chancellor restructured the taxes in his Budget, announcing an extra 10% tax on North Sea oil production.

Oil companies will also be affected by other increases, for example in corporation tax.

The proposals were attacked by the industry, with the UK Offshore Operators Association (UKOOA) warning that 50,000 jobs were under threat.

Economic issues

The UKOOA, which represents the major oil companies, said the industry would have to pay billions of pounds more to the Treasury.

It also claimed that companies would be deterred from exploring for oil in the North Sea.

That attack has been echoed by the SCDI, an independent network set up to lobby the government on economic issues.

It called for a full review of the tax regime and says it has lost trust in the government.

However, the government argued that the measures would deliver longer-term stability.

National resource

A spokeswoman said: "In order for the tax regime to be robust and carry credibility it has to strike the right balance between promoting investment and taking an adequate share of the profits derived from what is a significant national resource.

"The package announced in the Budget by the chancellor was designed to ensure companies pay a fair share of tax on profits from the exploitation of a national resource.

"The Budget measures deliver longer-term stability, establishing a more secure basis on which companies can plan for the future."