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Local authorities offered incentives for shale gas drilling

Local authorities will be able to keep 100% of business rates they gather from shale gas sites, the Prime Minister has promised.

Whitehall said the incentive could be worth up to £1.7 million a year, for a typical site.

French energy firm Total have simultaneously announced at least $21 million investment in UK shale gas through a 40% stake in two Lincolnshire sites.

David Cameron said: “A key part of our long-term economic plan to secure Britain’s future is to back businesses with better infrastructure. That’s why we’re going all out for shale.

“It will mean more jobs and opportunities for people, and economic security for our country.”

Business group, the Institute of Directors (IoD) called for incentives to encourage local authorities into shale gas deals, in a report last year.

The IoDs’ chief economist, James Sproule, said: “It’s vital that local communities see the benefits of new industry in their area, and this announcement sits alongside existing plans to support communities connected with the development of shale gas.”

“Investment from Total is a vote of long-term confidence in the UK shale industry, and is a welcome sign that the Government is creating the conditions necessary to maximise the potential benefits of a new domestic energy source.

“The wider benefits are clear; shale gas development could create tens of thousands of jobs, reduce imports, generate significant tax revenue and support a resurgence in British manufacturing. In short, shale gas could be a new North Sea for Britain.”

This was posted in Bdaily's Members' News section by Tom Keighley .