Metals: Recycling

Department for Business, Energy and Industrial Strategy written question – answered at on 26 April 2022.

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Photo of Henry Smith Henry Smith Conservative, Crawley

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he has had recent discussions with representatives of the metals recycling sector on the potential impact on their businesses of the loss of their entitlement to use red diesel.

Photo of Lee Rowley Lee Rowley Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy), Government Whip, Lord Commissioner of HM Treasury

The Government recognised that the changes to red diesel entitlements announced at Budget 2020 would be a significant change for some businesses and ran a consultation to gather information from affected users on the expected impact of these tax changes. As part of this, the Government engaged directly with a wide variety of organisations from all parts of the UK and carefully analysed all consultation responses received, including from the British Metals Recycling Association.

The metals recycling sector is eligible for support through the £289 million Industrial Energy Transformation Fund (IETF) and the £34 million Scottish IETF. These programmes provide capital support to industrial sites, helping them to become more energy efficient and to switch away from fossil fuels to lower carbon alternatives. We have recently promoted this funding opportunity with the British Metals Recycling Association, welcoming applications from sites impacted by the removal of the red diesel rebate.

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