Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, if he will have discussions with Cabinet colleagues on the potential merits of reducing red diesel costs to help support farmers through the cost of living crisis.

In response to high fuel prices, HM Government announced during Spring Statement 2022 a temporary 12-month cut to duty on petrol and diesel of 5p per litre, and a proportionate percentage cut for rebated fuels. This represents a tax cut for households and businesses worth around £2.4 billion in 2022-23. The entitlement to use red diesel was removed from most sectors in April 2022 under reforms to the 2020 Budget. However, the agriculture sector can continue to use red diesel. Those entitled to use red diesel currently pay a duty rate of only 10.18 pence per litre, which is significantly less than those using standard road fuel diesel, which has a duty rate of 52.95 pence per litre. As with all taxes, HM Government keeps the entitlement use to red diesel under review.