Cameron offers councils fracking tax boost

by Calum Fuller

More from this author

13 Jan 2014

  • Comments
gas well

LOCAL COUNCILS will be in line for a business tax boost if they allow fracking operations to take place in their areas, the prime minister has confirmed.

English local authorities that back fracking will receive all of the business rates collected from shale gas exploration and extraction, rather than the typical 50%.

The government claims the initiative will support 74,000 jobs and drive down bills, the BBC reports.

Officials said the commitment would see councils gain an extra £1.7m a year per fracking site, while mining companies had already pledged to give communities £100,000 per test drilling, plus a further 1% of revenues if shale gas is found.

Energy minister Michael Fallon claimed areas supporting fracking could benefit as much as £10m if shale gas was successfully extracted in their communities, through a 1% levy on company profits from fracking.

The British Geological Survey estimates there is 1,300 trillion cubic feet of shale gas present in the north of England. The fracking process to extract it has caused controversy over fears it can lead to earth tremors, water contamination and environmental damage.

French company Total confirmed it will be the first major energy company to invest in fracking in the UK, with £30m set aside to support two exploratory wells in Lincolnshire.

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."

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send

Financial Planning and Performance AnalystCabinet Office-Greater London-Competitive

 
 
 
 
 
 
 
 

 

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.