Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the impact on charitable activity in the agricultural sector that will result from HMRC’s decision to ban the use of red diesel in tractors for charity events from 1 April.

The Chancellor confirmed at Spring Budget 2021 that the Government will remove the entitlement to use red diesel for most uses from April 2022, other than for defined agricultural purposes and a limited number of other uses. This will help to ensure fairness between the different users of diesel fuels and that the tax system incentivises the development and adoption of greener alternative technologies.

Under the existing rules, agricultural vehicles, such as tractors, are currently entitled to run on rebated fuel when using public roads only for purposes relating to agriculture, horticulture and forestry, as well as cutting verges and hedges that border a road, clearing snow and gritting. Agricultural tractors will remain entitled to run on rebated fuel on public roads after April 2022 for these specific purposes only, as well as for purposes relating to fish farming and for clearing or otherwise dealing with flooding. The activities accepted as purposes relating to agriculture, horticulture and forestry are defined in HMRC Excise Notice 75.