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Written question asked by Cherilyn Mackrory (Conservative) on Monday, 6 December 2021, in the House of Commons. It was due for an answer on Wednesday, 8 December 2021. It was answered by Helen Whately (Conservative) on Tuesday, 14 December 2021 on behalf of the Treasury.

Minerals: Red Diesel

Question

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential effect on critical mineral production of ending of the red diesel rebate in April 2022.

Answer

Following consultation in 2020, the Chancellor confirmed at Spring Budget 2021 that the Government will remove the entitlement to use red diesel from most sectors from April 2022. This will more fairly reflect the negative environmental impact of the emissions they produce and help to ensure that the tax system incentivises the development and adoption of greener alternatives.

The Government did not believe that the cases made by sectors that will not retain their red diesel entitlement outweighed its environmental objectives. The Government recently announced the £40 million Red Diesel Replacement Competition to support the development and demonstration of low carbon alternatives to red diesel for the construction, and mining and quarrying sectors.

Going forward, the Government will publish a UK Critical Minerals strategy in 2022, setting out its approach to securing technology-critical minerals and metals.

Secondary information

Type
Written question
Reference
87850
Session
2021-22
Subjects
Minerals Red diesel
Link
View this Written question on www.parliament.uk