Taxation: Red Diesel
(asked on 17th April 2025) - View Source
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changes to the tax treatment of red diesel on small farming businesses.
This question was answered on 29th April 2025
In 2020, the previous Government announced that the red diesel entitlement would be withdrawn from most sectors from April 2022. However, farmers retained the entitlement to use red diesel for agricultural machinery.
At Autumn Budget 2024, the Government extended the temporary 5p fuel duty cut and cancelled the planned inflation increase for 2025-26, maintaining the red diesel rate at the levels set in March 2022 at 10.18p per litre.