[LONDON] Britain's finance minister George Osborne has announced an immediate cut in the supplementary tax charge on oil companies to help the industry cope with a steep drop in oil prices.

The supplementary charge will be reduced to 30 per cent from 32 per cent, helping producers faced with weak oil prices and high production costs.

"The lower oil price clearly presents a challenge to this vital industry," Mr Osborne said as he announced a half-yearly budget update.

REUTERS