Commons Sense

House of Commons · Ministers' Questions

Red Diesel Fuel: Planned Tax Changes

Tuesday 7 December 2021 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • Carla Lockhart questioned the impact of removing the duty discount for red diesel on the UK construction industry's employment and profitability.
  • Carla Lockhart expressed concerns from businesses in her constituency and Northern Ireland about the move crippling profitability due to rising material costs.
  • Matt Warman inquired about assurances for drainage boards' budgets and operations not being affected by changes to red diesel duty, emphasizing their role in flood protection.

Topics (select to filter)

Questions & Answers

Q1 Carla Lockhart DUP Upper Bann
Economy Northern Ireland Environment
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.

Question

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?

Answer from Helen Whately

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.

Partly answered

Not addressed: Commitment to meet industry representatives was not addressed specifically.

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Q2 Carla Lockhart DUP Upper Bann
Economy Northern Ireland Business & Trade Environment
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.

Question

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?

Answer from Helen Whately

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.

Partly answered

Not addressed: Commitment to meet industry representatives was not addressed specifically.

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Q3 Matt Warman Con
Climate Agriculture & Rural Affairs Environment
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.

Question

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?

Answer from Helen Whately

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.

Partly answered

Not addressed: Commitment to provide assurance was not addressed specifically.

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