LONDON – British Prime Minister David Cameron on Monday vowed tax breaks worth millions of pounds to local councils who encourage shale gas development, declaring the country is going “all out for shale.”
Cameron announced that local authorities in England will collect all of the tax collected from shale gas sites — double the current 50 percent figure.
The government calculates that this could be worth up to £1.7 million ($2.8 million) a year for a typical site. It hopes the move will ensure that communities benefit more from the exploitation of shale gas resources in their area.
The industry last year announced plans for communities to receive £100,000 when a test well is “fracked” — and a further 1 percent of revenues if shale gas is discovered.