Government plans to slash fracking taxes
THE government has proposed cutting the tax on some of the income generated from producing shale gas from 62% to just 30%.
It says this would make the UK the “most generous” tax regime for the gas in the world.
The North West is expected to be at the heart of the new industry with large amounts of shale gas underneath Lancashire.
Cuadrilla Resources is leading the charge and earlier this month announced plans for nine new wells in the county. It already has three exploration sites. Another company called Igas Energy is looking various sites including Salford and Ince Marshes, Cheshire.
The fracking process required to extract shale gas involves pumping large amounts of water, mixed with chemicals, underground at high pressure and has many opponents.
Environmentalists claim it can pollute the water table and last year the government imposed a temporary ban on fracking after a minor earthquake in Blackpool was linked to Cuadrilla’s operations at Preese Hall. This was lifted in December when Chancellor George Osborne first floated the idea of tax breaks for the industry.
He said: “We want to create the right conditions for industry to explore and unlock that potential in a way that allows communities to share in the benefits. I want Britain to be a leader of the shale gas revolution because it has the potential to create thousands of jobs and keep energy bills low for millions of people.”
But Andrew Pendleton of Friends of the Earth saidP: “Promising tax hand-outs to polluting energy firms that threaten our communities and environment, when everyone else is being told to tighten their belts, is a disgrace.”
