Autumn Statement: Government acts to boost shale sector
Chancellor George Osborne has announced further measures intended to further strengthen the nascent shale gas industry in today’s Autumn Statement.
Chancellor George Osborne has announced further measures intended to further strengthen the nascent shale gas industry in today’s Autumn Statement.
The Chancellor said that a new Sovereign Wealth Fund for the North of England would be established so that the shale gas resources of the North are used to invest in the future of the North. The chancellor told MPs that three funds had been created to encourage the extraction of shale gas in the UK.
The further boost for the fracking industry mirrors a similar announcement in last year’s Autumn Statement which saw the introduction of a new tax allowance to kick-start development of the UK's shale gas resources. The tax rate for initial profits made by shale explorers was roughly halved under the measure - saving companies an extra 24p in tax for every £1 they spend on shale development projects.
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