Last week the government unveiled controversial new plans for a proposed tax regime for shale gas allowances.
A government consultation is now open on the proposed tax regime which the government hopes will encourage nearly £14 billion of investment in shale gas.
The new allowance will reduce the tax on a portion of a company’s production income from 62% to 30% at current rates.
The government believe shale gas could lead to the creation of thousands of jobs and to increased tax revenues from the oil and gas industry.
Chancellor George Osborne said: “Shale gas is a resource with huge potential to broaden the UK’s energy mix.
“We want to create the right conditions for industry to explore and unlock that potential in a way that allows communities to share in the benefits. This new tax regime, which I want to make the most generous for shale in the world, will contribute to that.
“I want Britain to be a leader of the shale gas revolution — because it has the potential to create thousands of jobs and keep energy bills low for millions of people.”
The consultation will be open until 13th September, after which the government will put their proposals to parliament.
Many concerns have been raised about shale in the past as it can only be extracted using the controversial fracking method which brings with it significant environmental risks.
A previous study on the connection between house prices and fracking showed that those living within two miles of shale gas wells can expect house prices to fall by 24 per cent.
What do you think about the governments focus on shale? Are you concerned about this particular focus? Should it be the responsibility of conveyancers to inform consumers about the possible risks of shale?