The UK is going “all out for shale”, according to David Cameron on Monday.
Fracking the as yet untapped reserves of shale gas that sit below the northwest and southern England will lead to a boom for British business, and bring energy bills down, if he and chancellor George Osborne are to be believed.
Number 10 and Decc announced that local councils will be able to keep all the business rates from fracking sites. This is in addition to the potential £1.1 billion that community funds set up around future fracking wells could receive.
Opponents to shale gas call this a bribe for communities to encourage them to accept the drilling pads, although it must be noted that local authorities hosting renewable generation sources, such as wind turbines, get similar benefits.
The Tories are pushing the shale gas agenda forward. Cameron said: “It will mean more jobs and opportunities for people, and economic security for our country.” Michael Fallon, wearing both his Decc and BIS hats, added: “Local councils and people will benefit from millions of pounds of additional investment.”
Labour is less full-on with its support for fracking, and claims the Tories are overstating the benefits and portraying shale as a “silver bullet” to the UK’s energy issues. On its own, shale gas is not the solution, but it could “help improve our energy security” by replacing our North Sea reserves, said shadow energy minister Tom Greatrex, who added it is right that those living close to fracking wells “are able to share in its rewards”.