Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his Department's policies of the judgment by the Court of Justice of the European Union in Commission v United Kingdom (Fiscal marking of gas oil) on 28 September 2023.

This case concerns rules on markers used to distinguish rebated fuel used in private pleasure craft (PPC), which began at a time when the UK was an EU member state.

The fine of €32m is disappointing because the original 2018 judgment ruling that the UK was in contravention of the EU Fiscal Marking Directive was implemented as quickly as possible given the UK’s unique circumstances. The UK is a nation that honours its obligations, and we will meet our obligations under the Withdrawal Agreement.

From 1 October 2021, diesel-powered PPC in Northern Ireland have not been permitted to refuel with rebated (‘red’) diesel. Alongside this change, the government introduced a relief scheme to cover diesel used for non-propulsion purposes (e.g. heating and lighting the boat). This concluded the UK’s implementation of the 2018 judgment of the CJEU.