Fracking boost for local councils

The Prime Minister will outline new guidelines so that councils in England can keep 100% of the business rates they collect from shale gas sites – double the current figure.

The announcement comes after Total said it had acquired a 40% interest in two shale gas exploration licences in the UK.

The exploration programme, which will be operated by Island Gas, will cover an area of 240 km2 in the Gainsborough Trough area of the East Midlands.

We’re going all out for shale

David Cameron

Through the terms outlined in Cameron’s announcement, a typical shale gas site would generate up to £1.7 million per year, building on last year’s commitment by industry that see’s local communities receive £100,000 when a test well is fracked and a further 1% of revenues if shale gas is discovered.

The industry has said it wants to further this agreement by using any shared money to set up potential direct cash payments for those living near a fracking site and the setting up of local funds directly managed by local communities.

“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,” Cameron said.

However, the announcement has come in for criticism from several anti-fracking groups. Via its UK twitter handle, Greenpeace has labelled the announcement a “bribe” to get local councils the accept fracking.