Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to support farmers who have been affected by the increase in the price of red Diesel in South Suffolk.
Farmers retained the entitlement to use red diesel for agricultural machinery after it was withdrawn from most sectors in 2022. In contrast to full duty diesel, taxed at 52.95p per litre, red diesel currently incurs a duty of 10.18p per litre.
At Budget 2025, the Government extended the temporary 5p fuel duty cut alongside extending the proportionate percentage cut for rebated fuels, which includes red diesel. This maintains the red diesel rate at the levels set in March 2022 at 10.18p per litre until the end of August 2026, with rates then gradually returning to March 2022 levels by March 2027, an increase of less than 1p a litre. The planned inflation increase for 2026-27 has also been cancelled.