Oil and gas firms are meeting Energy Secretary Chris Huhne on Thursday to raise concerns over the Government's tax hike.

The talks come after two more companies joined Norway's Statoil in considering shelving North Sea investment projects.

Industry leaders are angry at the surprise windfall tax on oil company profits announced by Chancellor George Osborne in the Budget last week.

The move has severely damaged investor confidence according to operators association Oil & Gas UK. Scottish Secretary Michael Moore will also attend the meeting in London.

Several firms have been mounting pressure on the government. Norwegian firm Statoil announced they had stopped investment in North Sea oil on Tuesday, following the recent tax announcements in the Budget.

Statoil spokesman Bard Glad Pedersen said: "The proposed tax change has significant impact on the project economics of Mariner.

"We have to pause and reflect to evaluate what impact this will have and consider how to proceed after this. This is a project about to be developed. With this tax increase, there is a substantial impact."

Industry body Oil & Gas UK has warned that the tax decision could jeopardise thousands of jobs.

Malcolm Webb, Oil & Gas UK chief executive, said: "Oil & Gas UK's member companies agreed that the unexpected tax hike announced by the Chancellor in last week's Budget looks to have been constructed hurriedly without rigorous analysis of its implications and has damaged investors' confidence in the UK as a stable destination for their capital.”