FINANCE

Should residents get cashback to discourage Nimbyism?

With Number 10 suggesting cash revenues from shale gas exploration could bypass councils, Michael Burton examines whether such a plan could be extended elsewhere

If a councillor wishes to end their political career they can do no better than support a major infrastructure plan in their ward, whether it be a road, new housing, a railway, an incineration plant or fracking. Indeed a couple of years ago the head of a major waste company, so exasperated by the way councils continually blocked his plans for incineration plants, suggested residents should be compensated – or in essence receive a bung for their troubles. That, he felt, would dampen their implacable Nimbyism. Despite him sending the suggestion to Eric Pickles nothing ever came of it.

The idea is, in essence, what the prime minister proposed this week. She announced that instead of councils receiving cash for having to put up with the disruptive impact of shale gas exploration the money – 10% of shale gas exploration tax revenues – could go instead direct to households. Originally the £1bn Shale Wealth Fund was only going to councils and community groups. The idea is part of a wider consultation into how the fund might be spent locally and regionally with councils, and particularly councils in the North where most fracking exploration is widespread, set to benefit.

Michael Burton

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