According to the Chancellor, there will be a “generous” new tax system to encourage investment in the controversial exploration of shale gas. “Shale gas is part of the future,” the chancellor said.
“We will make happen” in the UK said the Chancellor.
The Chancellor’s continued ‘dash for gas’ will anger the green sector after Osborne did not mention the role renewable energy will play in the UK’s mission to a low-carbon economy.
In his budget announcement, the Chancellor said that “creating a low carbon economy must be done in a way that creates jobs, not costs them”.
This was backed up by his approval of the Secretary of State for Energy and Climate Change, Ed Davey’s, decision yesterday to give the plans for the nuclear project at Hinkley the go ahead.
He also said that Davey will announce two projects that have been chosen to go into the next stage of the Government’s CCS funding competition.
Those in the green sector will also be encouraged by the Chancellors announcement that he will be supporting low carbon automotive projects.
Finally, Osborne said he will “exempt” the ceramics industry from the Climate Change Levy to help the industry deal with rising energy costs.
Leigh Stringer