Red Diesel Fuel Planned Tax Changes 2021-12-07
2021-12-07
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The planned removal of the duty discount for red diesel will affect employment and profitability in the UK construction sector, especially small family-run companies.
What recent assessment has been made about the effect of removing the duty discount for red diesel on employment and profitability within the UK construction industry? In my constituency and across Northern Ireland, businesses are worried this move will cripple their profitability alongside rising material costs. Will the Chancellor and Minister meet with industry representatives to discuss these issues?
We recognise that this change is significant for businesses, but we have consulted on it since 2020 including those from the construction sector and Northern Ireland. Red diesel contributes to 14 million tonnes of carbon dioxide annually; therefore, incentivising greener alternatives aligns with our transition to net zero.
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Assessment & feedback
Commitment to meet industry representatives was not addressed specifically.
Response accuracy
Q2
Partial Answer
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Context
The planned removal of the duty discount for red diesel will affect employment and profitability in the UK construction sector, especially small family-run companies.
In my constituency and across Northern Ireland, small family-run construction companies and those operating on a larger scale are telling me that this move will cripple their profitability, alongside significant increase in material costs. Will the Chancellor and Minister agree to meet industry representatives to hear about real-life impact?
We recognise this is a significant change for businesses, but we have consulted since 2020 including those from the construction sector and Northern Ireland. Red diesel contributes to 14 million tonnes of carbon dioxide annually; therefore, incentivising greener alternatives aligns with our transition to net zero.
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Assessment & feedback
Commitment to meet industry representatives was not addressed specifically.
Response accuracy
Q3
Partial Answer
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Context
Drainage boards play a vital role in protecting people from flood risk. Concerns about budgeting and impact due to changes in red diesel duty.
I support the Government's push towards net zero. Drainage boards do vital work to protect against flooding and livelihoods. As they set their budgets, will the Government provide assurance that this work will not be affected by changes to red diesel duty?
Drainage boards do important work, and both public and private sectors need to decarbonise. The Department for Environment is working with the Association of Drainage Authorities on these points.
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Assessment & feedback
Commitment to provide assurance was not addressed specifically.
Response accuracy