May to divert fracking funds from councils

Prime Minister Theresa May has announced a proposal to divert fracking funds destined for local authorities to be given directly to households instead.

Under original rules, 10 per cent of the money generated from fracking and infrastructure, also named the Shale Wealth Fund, is supplied to local authorities and community groups in the area.

However, if the proposal is approved, the money will go directly to local residents instead, with government data estimating that each eligible community could benefit from up to £10 million.

The Shale Wealth Fund was initially launched in 2014 to encourage more shale gas exploration, however there has been no fracking gin the UK since 2011, after tests near Blackpool were found to have caused earthquakes.