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<p>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.</p><p>
</p><p>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.</p>
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