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Osborne announces shale gas tax break

Chancellor George Osborne announced yesterday the government is to consult on a targeted tax regime to help develop the UK’s shale gas industry.

With the UK’s shale gas industry at an early stage of development, the government believes a targeted tax regime will help unlock investment. It cited development of the North Sea gas industry through field allowances as a way of encouraging investment.

The government has said gas will continue to be an important part of the UK’s energy mix, and that a successful UK shale gas industry has the potential to create jobs and support energy security.

Osborne will now engage with companies to ensure the final structure is “appropriately targeted” while ensuring a fair tax take.

Developer Cuadrilla said last month it hopes to begin commercial shale production in 2015.

Readers' comments (1)

  • The very last thing we need is a tax break for carbon producers.
    This year climate change has led directly and attributably to crop failure across the world, including UK, with grain prices set to increase food prices, including meat. (Look at the internet reports of scientific evaluation of crop failure if you don't think these are causally linked.) On top of that five years of abnormal flooding has enveloped parts of UK, including 500-year-return storms. We simply cannot afford the degradation of resources that yet more carbon based energy production will yield.

    Of course no one incident can be attributed solely to climate change, but the evidence accumulates daily.

    What Osbourne should be doing is backing the Civil Engineering profession in its desire to build the Severn barrage. This will yield far more energy than the gas-fracking projects. The French built La Ranche in the 1960s and it is still going strong. Let's tell the government to get behind schemes which carry us forward, not give tax breaks to carbon dioxide producers.
    Peter Gardiner FICE

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