Councils which give the green light to fracking projects will be allowed to keep millions of pounds more in tax revenue, David Cameron has announced.
The prime minister said that local authorities in England would receive 100% of the business rates collected from shale gas schemes – rather than the usual 50%.
The move is part of an “all out” drive to exploit the controversial pressure mining technique. The government says it could generate billions of pounds for the economy, support 74,000 jobs and lower energy costs.
Oil giant Total is to confirm today it is investing in fracking in the UK by taking a share in a licence in the Midlands operated by a US firm. Whitehall officials said the business rates co-mmitment means councils keeping up to £1.7million extra a year from each fracking site.
They stressed the mining industry had already pledged to give communities £100,000 for each test drilling – and a further 1% of the revenues if shale gas is discovered.
Mr Cameron said: “A key part of our economic plan to secure Britain’s future is to back businesses with better infrastructure.
“That’s why we’re going all out for shale. It will mean more jobs and opportunities for people.”
Business Minister Michael Fallon said Britain had to “embrace the extraordinary opportunities offered by shale gas” for the sake of generations to come.
“In the 1970s, North Sea oil helped salvage our economy from crippling stagnation,” he said.
“We have a similar chance to create tens of thousands of jobs and energy security.”
Environmentalists accused ministers of trying to bribe local authorities.
Lawrence Carter, of Greenpeace, said: “This is a naked attempt by the government to bribe hard-pressed councils into accepting fracking in their area. Cameron is effectively telling councils to ignore the risks and threat of large-scale industrialisation in exchange for cold hard cash.”