Reduction announced in payments that will be made to new wind farms

Recent news has come out of the Department for Energy and that has confirmed there is going to be a 10 percent cut in the amount of payments that are going to be made for new wind farms in the country. This is not a particularly damaging cut, but it is thought that as the cost of renewable energy is reviewed over the next two years that potentially greater cuts could be made.

The Treasury also recently made an announcement that any gas fields that are found with a depth of less than 90 feet are going to be exempt from the 32 percent tax that is currently placed on gas discoveries. The tax relief is only going to be valid for the first £500 million that is gained because of the discovery.

The idea behind this incentive is that it is hoped to unlock new investments that could be worth around £1 billion. Just hours after the announcement by the government, the major gas company Centrica stated that they are going to be putting nearly £1.5 billion into development of the gas that is located in the North Sea.

The company stated that, “This tax break signifies the removal of a major obstacle which is so far stop the development of the site.” Mr Osborne has said, “Gas is the largest energy source in the UK.

The government’s move here shows that we are dedicated to delivering low carbon, secure and stable energy sources over the long term in the country.” It is expected that the move is going to create around 4000 jobs in the country and it also will bring in around £1 billion worth of tax revenues to the Treasury.