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To ask the Chancellor of the Exchequer, what assessment he has made of the cost to the mining and quarrying industries of the withdrawal of the red diesel fuel duty rebate from April 2022; and whether that assessment includes the availability of alternative non-fossil fuel heavy plant and machinery.
To ask the Chancellor of the Exchequer, what assessment he has made of the cost to the mining and quarrying industries of the withdrawal of the red diesel fuel duty rebate from April 2022; and whether that assessment includes the availability of alternative non-fossil fuel heavy plant and machinery.
At Budget 2020, the Chancellor announced that the Government will remove the entitlement to use red diesel from April 2022, except in agriculture, fish farming, rail and for non-commercial heating (including domestic heating). This change will ensure that most businesses using diesel in the UK pay the standard fuel duty rate on diesel, which more fairly reflects the harmful impact of the emissions they produce. These reforms are also designed to ensure that the tax system incentivises users of diesel to improve the energy efficiency of their vehicles and machinery, invest in cleaner alternatives or use less fuel.
The Government recognises that this will be a significant change for some businesses, including in the mining and quarrying industries. It launched a consultation in July to make sure it has not overlooked any exceptional reasons why other sectors should be allowed to continue to use red diesel beyond April 2022, and officials met with representatives from the industry on the 8th of September. As part of this, the Government has been seeking information from affected users on the expected impact of these tax changes, including on their capacity to shift to cleaner alternatives.
To ask the Chancellor of the Exchequer, what assessment the Government has made of the potential merits of providing businesses located in the vicinity outside a local covid-19 lockdown area with additional financial support to mitigate the effect of restricted movement.
To ask the Chancellor of the Exchequer, what assessment the Government has made of the potential merits of providing businesses located in the vicinity outside a local covid-19 lockdown area with additional financial support to mitigate the effect of restricted movement.
The government has delivered on its promise to stand by businesses and workers throughout the pandemic and has provided one of the most comprehensive and generous packages of support globally. This support has included billions of pounds for businesses through loans and grants, support for millions of jobs through the Coronavirus Job Retention Scheme and Self-Employment Income Support Scheme, deferred VAT payments, and a lease forfeitures moratorium for commercial tenants. The Chancellor recently extended the furlough scheme until the end of October and a host of these other support measures are still available to support businesses. Additionally, on 8 July the Chancellor announced the Plan for Jobs, the measures in which will provide additional support to all businesses as we reopen the economy.
We are continuing to review the economic situation and will continue helping businesses through this crisis where it is appropriate.