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Chancellor shows fracking support in Autumn Statement

6 December 2012 Last updated at 03:20 GMT

The government has given a clear indication that the controversial gas extraction technique fracking is to get the green light.

In his Autumn Statement, Chancellor George Osborne laid out plans for tax breaks for the industry and a new government office to look after shale gas.

Fracking has divided opinion, as opponents fear the environment will suffer if it goes ahead.

A company involved in fracking, Cuadrilla Resources, has four exploration drilling sites in Lancashire - three on the Fylde at Westby, Singleton and Weeton and one at Banks in West Lancashire.