Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the effect of the removal of the right to use red diesel from April 2022 for flood risk management purposes on the cost of pumping operations by IDBs and others; what consultation he has had with those likely to be affected; and what steps the Government plans to take to ensure that future flood prevention activities are not compromised.

The changes to the tax treatment of red diesel from April 2022 are designed to incentivise greater energy efficiency and the switch to more environmentally friendly alternatives in both the public and private sectors. The Government recognises that these changes may affect some public sector bodies, including Internal Drainage Boards, and Treasury officials met representatives from the drainage, water level and flood risk management sector to discuss these tax changes. The Treasury will discuss spending pressures that may arise in the public sector as part of the next Spending Review.

The Government takes flood risk very seriously. That is why it has doubled the amount it invests in flood and coastal defences to £5.2 billion by 2027.