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Government Announces Consultation On Red Diesel

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red diesel consultationThe government has announced in the Spring Budget that they are seeking evidence to support the use of red diesel.

Chancellor Phillip Hammond said that the consultation will be focused on understanding how it is currently used and which industries use rebated gas oil the most.

Why Is the Government Seeking Evidence?

While the Chancellor has stated that the evidence will focus on how red diesel is used, it is thought that the focus will be how it is used in urban areas.

Some experts are suggesting that the government is looking to try and lower the use of gas oil as part of their plans to reduce levels of pollution, but this has not yet been confirmed.

What Does This Mean for My Business?

At the moment, very little is known about what this consultation will mean for red diesel users. Because the evidence is focusing on urban areas, it is more likely that any suggested changes will have an impact on some boilers and generators. Agricultural vehicles that make short road journeys could also be affected.

The National Association of Agricultural Contractors (NAAC) have said that they will pay close attention to the evidence that the government presents and will attempt to preserve the rights of contractors that work in the agricultural industry.

When Will The Evidence Be Published?

The government’s evidence will be published on Monday 20th March 2017.

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