Asked by: Chris Curtis (Labour - Milton Keynes North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changes to the tax treatment of red diesel on small farming businesses.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In 2020, the previous Government announced that the red diesel entitlement would be withdrawn from most sectors from April 2022. However, farmers retained the entitlement to use red diesel for agricultural machinery.
At Autumn Budget 2024, the Government extended the temporary 5p fuel duty cut and cancelled the planned inflation increase for 2025-26, maintaining the red diesel rate at the levels set in March 2022 at 10.18p per litre.
Asked by: Kevin Hollinrake (Conservative - Thirsk and Malton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of permitting community owned facilities to use red diesel for the purposes of (a) heating and (b) electricity generation.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In 2020, the previous Government announced that the red diesel entitlement would be withdrawn from most sectors from April 2022. Following consultation in 2020-21, the previous Government confirmed that some sectors would retain the entitlement to use red diesel, including non-commercial heat and power generation, and domestic heating. A machine or appliance may use red diesel where 75% or more of the electricity or heat generated is for premises, or parts of premises, that are not used for commercial purposes.
The Chancellor makes decisions on tax policy at fiscal events in the context of public finances.
Asked by: Paul Kohler (Liberal Democrat - Wimbledon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make a comparative estimate of the potential impact of maintaining levels of fuel duty at the Autumn Budget 2024 on the cost of transporting goods by (a) rail freight and (b) road haulage.
Answered by James Murray - Exchequer Secretary (HM Treasury)
At Autumn Budget 2024, the Government announced continued support for people and businesses by extending the temporary 5p fuel duty cut and cancelling the planned increase in line with inflation for 2025/26.
This maintains fuel duty rates, including those for red diesel, at the levels set in March 2022 for an additional 12 months and represents an average saving of nearly £1,100 for heavy goods vehicles in 2025/26.
In 2020, the previous Government announced that the red diesel entitlement would be withdrawn from most sectors from April 2022. In the rail sector, the previous Government concluded that the removal of the red diesel entitlement for passenger or freight journeys risked creating perverse environmental outcomes, namely transferring rail freight or passengers to more polluting lorries, coaches and cars if costs rose. Whereas full duty diesel is taxed at 52.95p per litre, red diesel is taxed at 10.18p per litre.
Feb. 25 2025
Source Page: £120 million to roll-out more electric vans, taxis and motorbikesFound: extends support to help drivers, businesses, fleets and cabbies make the switch to cleaner vehicles red
Feb. 25 2025
Source Page: £120 million to roll-out more electric vans, taxis and motorbikesFound: extends support to help drivers, businesses, fleets and cabbies make the switch to cleaner vehicles red
Written Evidence Feb. 06 2025
Inquiry: Unlocking community energy at scaleFound: As a result of pushing the park transformation, the Government wouldn’t need to subsidize red diesel
Apr. 22 2024
Source Page: Red Diesel Replacement competition: successful projectsFound: Red Diesel Replacement competition: successful projects
Written Evidence Mar. 04 2025
Inquiry: Rail investment pipelines: ending boom and bustFound: This means more seats for passengers. • Journey Time: Electric trains are faster than diesel, bi-mode
Mentions:
1: Heidi Alexander (Lab - Swindon South) the Government are maintaining our manifesto commitment to phasing out the sale of new petrol and diesel - Speech Link
2: Gareth Bacon (Con - Orpington) reacted to sluggish automotive trade figures by making the pragmatic decision to delay the ban on new diesel - Speech Link
3: Paul Kohler (LD - Wimbledon) will the Government start negotiations with the EU about the formation of a UK-EU custom union, to cut red - Speech Link
4: Heidi Alexander (Lab - Swindon South) For the first time ever, London’s double-deck red buses will now be able to cross the Thames east of - Speech Link
5: Siân Berry (Green - Brighton Pavilion) We all know that diesel and petrol hybrids are not zero emission, we know that the 2035 extension is - Speech Link
Jan. 01 2025
Source Page: MIN 698 Amendment 1 (M) Workboat Code Edition 3 – standards and guidelines for best practiceFound: fuel systems for outboard motors ISO 21487: 2012 Small Craft ─ Permanently installed petrol and diesel