In his Budget speech given in Parliament on Wednesday, Chancellor George Osborne announced plans for Britain to tap into new sources of low cost energy, such as shale gas.

To support this, he plans to introduce "a generous new tax regime", including a shale gas field allowance, to promote early investment.

"Shale gas is part of the future and we will make it happen," he said.

The Chancellor also announced plans to take two major carbon capture and storage projects to the next stage of development.

"Creating a low carbon economy should be done in a way that creates jobs rather than costing them," he said.

"We'll support the manufacture of ultra low emission vehicles in Britain with new tax incentives.

"For the North Sea we will this year sign contracts for future decommissioning relief, the expectation of which is already increasing investment there."

He also commented that the granting of planning permission yesterday at Hinkley Point was a "major step forward for new nuclear".

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