Mounting Pressure: ‘Tractor runs will no longer be financially viable to participate in’

There is ‘mounting pressure’ on the government to postpone the change in red diesel rebate for industries such as haulage and construction.
By Joanne Knox
Published 22nd Mar 2022, 16:19 BST
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The change will also impact the charity sector, an MP has warned, as tractor runs will no longer be “financially viable” for farmers to participate in.

Upper Bann MP Carla Lockhart has been ‘leading the charge’ in Westminster and has, today, alongside DUP colleagues, delivered a letter to the Chancellor calling on him to draw back from this “reckless tax grab”.

Ms Lockhart has engaged cross-party support for her campaign and has been supported by many of the leading industry federations.

Carla Lockhart MP with industry representative, Gordon Best of the Mineral Products Association, on a recent visit to London to highlight the issues facing the quarrying industry.Carla Lockhart MP with industry representative, Gordon Best of the Mineral Products Association, on a recent visit to London to highlight the issues facing the quarrying industry.
Carla Lockhart MP with industry representative, Gordon Best of the Mineral Products Association, on a recent visit to London to highlight the issues facing the quarrying industry.

The proposed date for the removal of the rebate is 1 April, forcing businesses to use white diesel, as opposed to red, costing an “inordinate amount of money” for the industries affected, including construction, haulage, waste and generator powered businesses.

This, in turn, will be “passed on to the end user with increased food, construction and manufacturing costs”, Ms Lockhart pointed out.

“I have been inundated with businesses contacting me concerning this change,” she revealed.

“Many concerned about their future viability, given the financial impact this, along with the many other rising costs, will have.

“The frustration with this change in rebate is simple and industry reps have said, it is the right policy but the wrong time, given that there are no greener heavy goods/construction plant alternatives available on the market.

“Hydrogen options are currently being prototyped but will take some time before they are available to the industry.”

One haulier has indicated the cost to his business carrying fresh refrigerated foods will increase by around £90,000 per year.

Another quarrying business has said it will cost their business in the region or £400,000 per year.

Ms Lockhart added: “This is simply a tax grab on the part of the government, given that they have presented no evidence as to their claim that it will improve air quality and help the government achieve Net-Zero.

“Whether vehicles run on red or white, the emissions are the same, the only difference is the government get additional taxes.

“Lobbying of Treasury continues with a deluge of companies getting in touch directly with The Chancellor, Rishi Sunak.

“The government have got this wrong.”

She continued: “Without a common sense approach to this issue, we will see businesses cease to trade, a rise in cost of construction with less money available to government to build roads, hospitals and schools.

“The Chancellor in his budget speech to the house last year stated, ‘that is what this budget is about and that is what this government are about. Infrastructure connects our country, drives productivity and levels up’.

“He is right, so why make such a key driver in our economy more expensive?” Ms Lockhart questioned.

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Related topics:Carla LockhartDUP