| answer text |
<p>At Budget 2020, the Chancellor announced that the Government will remove the entitlement
to use red diesel from April 2022, except in agriculture, fish farming, rail and for
non-commercial heating (including domestic heating). This change will ensure that
most businesses using diesel in the UK pay the standard fuel duty rate on diesel,
which more fairly reflects the harmful impact of the emissions they produce. These
reforms are also designed to ensure that the tax system incentivises users of diesel
to improve the energy efficiency of their vehicles and machinery, invest in cleaner
alternatives or use less fuel.</p><p> </p><p>The Government recognises that this will
be a significant change for some businesses, including in the mining and quarrying
industries. It launched a consultation in July to make sure it has not overlooked
any exceptional reasons why other sectors should be allowed to continue to use red
diesel beyond April 2022, and officials met with representatives from the industry
on the 8<sup>th</sup> of September. As part of this, the Government has been seeking
information from affected users on the expected impact of these tax changes, including
on their capacity to shift to cleaner alternatives.</p>
|
|
