Red Diesel: Golf

Treasury written question – answered on 7th September 2020.

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Photo of Jonathan Edwards Jonathan Edwards Independent, Carmarthen East and Dinefwr

To ask the Chancellor of the Exchequer, what assessment he has made of the effect on community golf clubs of prohibiting the use of red diesel.

Photo of Kemi Badenoch Kemi Badenoch The Exchequer Secretary

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. 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. As part of this, the Government is seeking information from affected users on the expected impact of these tax changes.

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