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Billions Of Pounds From Shale Gas To Boost Northern England

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Marco Giannangeli, Sunday Express

Billions of pounds raised from shale gas in the North will go to a sovereign wealth fund to benefit the region, it was announced last night.

George Osborne plans for shale gas funds to go to sovereign wealth GETTY

George Osborne backed the proposal last night

George Osborne supports the proposal, to be debated in the House of Lords tomorrow as part of Government attempts to transform the region into a “powerhouse” of industry and investment.

Last night the Chancellor said the idea would ensure revenue was not “squandered on day-to-day spending” but invested in the “long-term health” of the region.

Fracking, part of the Government’s energy strategy, will become more important as UK oil and gas production continues to decline.

Treasury officials would not speculate what shale gas could yield in terms of revenue but a recent report by Deloitte found a single shale gas development in Lancashire could generate tax revenues exceeding £580million a year by 2020.

The Bowland Basin development, which could support up to 23,000 jobs, is expected to replace 14 per cent of Britain’s gas imports by the same year.

The latest measures could see tax revenues from Bowland Basin and other fields reinvested in the region.

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