VIDEO: David Cameron visits IGas in Gainsborough

Mr Cameron said councils will keep 100 per cent of business rates they collect from shale gas sites – double the current 50 per cent figure.

This is in addition to last year’s announcement that local communities would receive £100,000 when a test well is fracked – and a further 1 per cent of revenues if shale gas is discovered.

“There will be a real benefit for local communities in terms of local council’s getting 100 per cent of the business rates, and up to £10 million for a typical site,” he said.

“It will mean more jobs and opportunities for people, and economic security for our country.”

During his visit to the IGas gathering centre near Gainsborough, Mr Cameron had a tour of the facilities and visited a neighbouring drilling site.

The news of the cash incentive comes as French gas and oil giant Total is set to announce a multi-million pound project to drill for share gas in the area.

IGas would be one of a number of partners involved in the project.

Bassetlaw MP John Mann welcomed the creation of jobs and investment in the area, but questioned whether communities would actual see the levels of investment being talked about.

“We must ensure that local communities reap the benefits from sites such as these and announcements like this must not see them short changed,” he said.

Check back here later for the audio of the interview with Mr Cameron.