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.