Chancellor George Osborne has unveiled tax breaks for fracking in a bid to create the "most generous" regime for shale gas in the world.
A new shale gas allowance will more than halve the tax due on a proportion of income from production, which will be determined following consultation, in order to encourage exploration of the unconventional energy resource in the UK.
The backing from the Treasury comes after a recent report from the British Geological Survey revealed there was twice as much shale gas in the north of England as previously thought.
Other areas of the country could also have shale gas reserves.
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