Red Diesel

(asked on 12th March 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to line 39, table 2.1 of the Budget 2020 Red Book, HC 121, if he will provide a sectoral breakdown of the estimated revenue increases from the removal of tax relief for red diesel.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 17th March 2020

As set out in the policy costings document published alongside Budget 2020, the Government used the BEIS Digest of United Kingdom Energy Statistics (DUKES, 2019) to estimate the proportion of red diesel that would have its relief removed. The BEIS publication provides a sectoral breakdown of the different uses of gas oil (off-road diesel), and this is published at:

https://www.gov.uk/government/statistics/digest-of-uk-energy-statistics-dukes-2019

The current users of red diesel that will lose their entitlement to use it from April 2022 will pay the standard duty rate for diesel. As of 2019-20, the red diesel fuel duty rate is 11.14 pence per litre (ppl), and standard duty rate for diesel is 57.95ppl. The policy costings document provides more information on the assumptions and methodology underlying the costing for the removal of the entitlement to use red diesel from most sectors from April 2022, and this is published at:

https://www.gov.uk/government/publications/budget-2020-documents

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