The Prime Minister will announce that councils can keep 100 per cent of business rates they collect from shale gas sites – double the current 50 per cent figure.
This commitment could be worth up to £1.7 million a year for a typical site. It will be directly funded by central government.
Community benefits for local people will also be strengthened. Last year, the industry announced that local communities would receive £100,000 when a test well is fracked – and a further 1 per cent of revenues if shale gas is discovered. This could be worth £5 to £10 million for a typical producing site over its lifetime.
The industry has confirmed it will further consult on how this money can best be shared with the local community, with options including direct cash payments to people living near the site, plus the setting up of local funds directly managed by local communities.
The decision to back the shale gas industry is part of our long-term economic plan to build a stronger, more competitive economy, create more jobs and secure a better future for Britain.
Prime Minister 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.”
Shale gas represents a huge economic opportunity for the UK with research from the Institute of Directors showing investment could reach £3.7 billion a year and support 74,000 jobs in the oil, gas, construction, engineering and chemicals sectors. The industry will today set out proposals on how best to secure a role for UK companies as part of its supply chain as shale gas production develops in the UK.
Energy Minister Michael Fallon said:
“We already knew that the development of shale gas could bring growth, jobs and energy security to the country, and now local councils and people will benefit from millions of pounds of additional investment.”
