Red diesel Budget tax move ‘could signal’ the end of fairground rides
The Chancellor will be remembered as the man who ended the fairground ride by removing the red diesel tax break, MPS have said.
Labour’s Steve Mccabe said fairground operators made “extensive use of red diesel” and the increase in fuel duty could put them out of business. He said most pumps being used to deal with the aftermath of flooding also run on red diesel.
In Tuesday’s Budget, Chancellor Rishi Sunak announced the UK government would remove the tax break on red diesel for industrial vehicles.
From April 2022, red diesel will be available only to agriculture and the rail sector.
Mr Sunak described red diesel as “a £2.4 billion tax break for pollution that’s also hindered the development of cleaner alternatives”.
The red diesel scheme allows selected users to pay duty of just over 11p per litre for diesel, compared to almost 58p per litre for everyone else.
Mr Mccabe said: “On red diesel I appreciate he [Mr Sunak] presents it as a green measure, while simultaneously announcingahugeroadbuilding programme, but nonetheless I notice he’s announced a time delay and he’s gone out of his way to placate the NFU – a special interest group. But I simply remind him of the other sectors this will affect.
“At a time when pumps all over the country are in action pumping out flood water, most of these pumps run on red diesel. Our construction industry, which most certainly doesn’t need any further cost pressures, particularly if the Chancellor is to realise his infrastructure ambitions, makes extensive use of red diesel, as do fairgrounds.
“I’m with the honourable lady for Rutherglen and Hamilton West [Margaret Ferrier], I’m sure the Chancellor doesn’t want to go down in history as the man who did for the fairground ride.”
Earlier, the SNP’S Ms Ferrier said: “Fairground operators make a significant economic contribution to my constituency and use red diesel for their power generating equipment.”