A technical consultation on draft rules allowing councils to keep all of the cash they collect from fracking companies is open.
The Department for Communities and Local Government (DCLG) is seeking views on the proposed arrangements to implement 100% local retention of business rates – double the current 50% figure – for shale oil and gas sites announced by Prime Minister David Cameron in January this year.
It has published draft regulations for the measure, which could be worth up to £1.7 million for a typical site and will be funded by the government.
Kris Hopkins MP, Parliamentary Under Secretary of State for Communities and Local Government said: “The draft regulations define the sites on which 100% retention of business rates will apply and set out the arrangements for sharing that revenue between the different tiers of local government.
“Consultation will allow us to ensure we have correctly defined shale oil and gas sites and that the regulations, once made, will give local government the certainty they need over future business rates income.”
Following the consultation, which ends on 5th December, the government intends to lay the regulations before Parliament and hopes the rules will come into effect from 1st April 2015.