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Written question asked by Lord Whitehead (Labour) on Friday, 4 September 2020, in the House of Commons. It was due for an answer on Tuesday, 8 September 2020. It was answered by Kemi Badenoch (Conservative) on Thursday, 10 September 2020 on behalf of the Treasury.

Fuel Oil: Excise Duties

Question

To ask the Chancellor of the Exchequer, what assessment he has made of the compatibility of the heavy mineral oil excise duty reclamation scheme H049 with the Government's climate change policies.

Answer

HMRC estimates that around 13 million litres of diesel is sold under the horticultural producers’ relief per year.

The relief exists because of the particular climatic conditions within the UK, allowing UK producers to compete with producers from more temperate climates. In allowing them to compete on this basis, the UK is less reliant on food imports, with transportation having its own environmental costs.

The horticultural producers’ relief scheme has carried a negligible cost to the Exchequer for the last six years, reflecting the very small amount of diesel used under this relief. HMRC publishes estimated costs of non-structural reliefs here: https://www.uktradeinfo.com/Statistics/Pages/TaxAndDutybulletins.aspx

Secondary information

Type
Written question
Reference
84961
Session
2019-21
Grouped for answer
Yes
Subjects
Climate change Excise duties Horticulture Fuel oil
Link
View this Written question on www.parliament.uk