British PM Offers Local Councils Higher Stake on Shale Gas

The UK government further nurtured its nascent shale gas industry on Monday, offering 100% of the local levy collected by the councils that allow shale gas developments.

“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,” Prime Minister David Cameron commented.

According to the move, British local councils will benefit of the totality of the local tax known as business rates. Before they were entitled to keep 50% of the tax, which is applied on commercial properties in England and Wales.

‘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,’ reads the note released by Prime Minister David Cameron on Monday.

According to 10 Downing Street, the government will consult with the industry on how this money can best be shared with the local community. Options include direct cash payments to people living near the site, plus the setting up of local funds directly managed by local communities.