Britain weighing fracking tax breaks

2012-10-08 22:22
Fracking rig. (AP Photo/Ed Andrieski, File)

Fracking rig. (AP Photo/Ed Andrieski, File)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

kalahari.com

Birmingham - Britain is considering "generous" tax breaks for shale gas exploration to encourage investment in the industry, Finance Minister George Osborne said on Monday.

His announcement came as the coalition government's energy minister said he hoped to be able to lift a suspension of the controversial shale extraction technique known as fracking after a series of small earthquakes.

"We are today consulting on a generous new tax regime for shale so that Britain is not left behind as gas prices tumble on the other side of the Atlantic," Osborne told the annual conference of his Conservative party.

He said that while Britain's government would invest in renewable energy it was important to keep "opening up the newly discovered shale gas reserves beneath our land".

The Treasury said it would now speak to business about a "targeted tax regime" for shale.

It said a successful British shale industry could create jobs and support energy security, adding that it had followed a similar example with North Sea fossil fuel reserves.

Britain's only operative shale extraction site in Lancashire's Fylde coast in northwest England halted work in 2011 after fracking was believed to have caused two small earth tremors.

But Energy Minister Ed Davey said separately on Monday that he believed it was time to end the suspension.

"In the context of the Government's green light for carbon capture and storage of fossil fuel plants and in the light of evidence of the best regulatory regime, I hope it will prove possible for me to give a green light to shale," he told an industry conference in London.

Dash for gas

Business lobby group the Confederation of British Industry (CBI) welcomed Osborne's proposals to encourage share gas exploration.

"It makes sense to maximise the amount of energy we can produce at home at reasonable cost," said CBI director general John Cridland.

"Incentivising the exploration of shale gas sits alongside investment in renewables. I don't want all my eggs in one energy basket."

However, environmental groups rejected Osborne's plan, saying the government should focus more on renewable energy.

"Generous shale gas tax breaks show the Chancellor clearly isn't listening to the increasingly vociferous warnings from leading politicians, businesses and climate experts about his reckless dash for gas," said Craig Bennett of Friends of the Earth.

Hydraulic fracturing or fracking is the drilling of underground shale rock formations by injecting chemicals and water to release trapped natural gas.

Opponents say it causes water pollution but energy groups say it provides access to considerable gas reserves and drives down prices.

Read more on:    uk  |  energy  |  environment  |  fracking
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
4 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/News
 

Get fit on a budget

It’s time to throw the “I can’t afford to exercise” excuse out the window.

 
 

Where were you when you last felt alive?

Tips for paddling your first Dusi
Climbing the world’s largest stone arch
Awesome extreme sports people
Watch: 2015 Absa Cape Epic route

Jobs in Cape Town [change area]

Jobs in Western Cape region

Customer Service Hosts

Parow
O'Brien Recruitment
R12 000 - R12 500 Per Month

Senior .Net Developer

Cape Town
Communicate Cape Town IT
R410 000 Per Year

Sales Consultant

Western Cape
Pinagare Human Capital Specialists
R12 000 Per Month

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Seen something you like in our catalogue?

Find the perfect gift and save up to R5000 – As seen on the catalogue. Hurry and shop now!

Save up to R1000 on Hisense smartphones!

View the large range of Hisense smartphones. Buy today and save up to R1000!

Toys 4 for the price of 3

Buy 4 toys and get the cheapest FREE! Offer valid while stocks last. Shop now!

Mind blowing prices – As seen on TV

Get mind blowing prices on 1000’s of products! Shop now.

Deal of the week!

Save R1200 on the Samsung 48” smart full HD LED television now only R8799. Buy now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

You may be in the mood to philosophize and socialize and expand your mind on various discussions and group activities. You could...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.