The Chancellor of the Exchequer outlined his commitment to shale gas during his annual Budget.
Speaking to the House of Commons yesterday, George Osborne said that he would introduce a “generous new tax regime” for shale gas, as part of his 2013 Budget.
“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.”
He also promised to “develop proposals by summer 2013 to ensure local communities will benefit from shale gas projects in their area”.
Britain lifted the ban on shale gas fracking in December, despite environmental concerns.
Speaking in December, Energy and Climate Change Secretary Ed Davey said:
“Shale gas represents a promising new potential energy resource for the UK. It could contribute significantly to our energy security, reducing our reliance on imported gas, as we move to a low carbon economy.
“My decision is based on the evidence. It comes after detailed study of the latest scientific research available and advice from leading experts in the field.
“We are still in the very early stages of shale gas exploration in the UK and it is likely to develop slowly. It is essential that its development should not come at the expense of local communities or the environment. Fracking must be safe and the public must be confident that it is safe.”