Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of fuel costs on the financial sustainability of volunteer-run heritage railways; and whether he will consider (a) extending or enhancing fuel duty relief for the sector, (b) VAT relief for fuel for the sector and (c) a targeted support scheme for the sector's steam coal and diesel costs.

At Budget 2020, the Government announced that it would remove the entitlement to use red diesel from April 2022, except in agriculture, rail and for non-commercial heating. Vehicles designed to be operated on railways that meet the statutory definition remain eligible to use red diesel for the purposes of propulsion. At Budget, the Chancellor announced he is extending support to users of red diesel by keeping the additional 3.7p duty cut in place to 1 July 2027, the lowest level in over 20 years.

The Chancellor makes decisions on tax policy at fiscal events, and does not routinely comment on proposals.