Local communities should receive 10% of the money made from fracking schemes, according to council leaders.

The Local Government Association (LGA) is warning that local communities should not be ‘short-changed’ by the Government and be ‘fairly remunerated' for any fracking schemes.

Mike Jones, chair of LGA’s Environment and Housing Board, said: ‘Given the significant tax breaks being proposed to drive forward the development of shale gas and the impact drilling will have on local communities, communities should not be short-changed by fracking schemes. One per cent of gross revenues distributed locally is not good enough; returns should be more in line with payments across the rest of the world and be set at 10 per cent.

‘The community benefits of fracking should be enshrined in law, so companies cannot withdraw them to the detriment of local people. The LGA is encouraging the development of models which will ensure cash is used to support local priorities and which will treat money from fracking separately from ordinary tax revenue.’

The LGA also wants local communities to have a greater say over whether fracking should go ahead through the planning system.