George Osborne has brushed aside concerns over shale gas
Posted on 21 March 2013.
George Osborne has brushed aside concerns over shale gas by committing to an exploration drive in the UK with generous tax breaks for fracking companies and promises to hand financial incentives to local communities.
"I want Britain to tap into new sources of low-cost energy like shale gas," said the chancellor. "Shale gas is part of the future. And we will make it happen."
Fracking companies will get a tax allowance for developing gas fields and will now be able to offset their exploration spending against tax for a decade. The controversial drilling technique involves pumping water, sand and chemicals into deep wells at high pressure, which opens up fissures in shale rock and allows trapped gas to be extracted.