Consultation outcome

Consultation on reforms to the tax treatment of red diesel and other rebated fuels

This consultation has concluded

Download the full outcome

Summary of responses to the consultation

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Detail of outcome

At Budget 2020, the government announced that it will remove the entitlement to use red diesel from most sectors from April 2022, to ensure businesses pay for the harmful emissions they produce and to incentivise the development and adoption of greener alternatives. The government ran a consultation last year to make sure it had not overlooked any exceptional reasons why sectors currently using red diesel should be allowed to continue to do so beyond April 2022, and to seek views on its proposals for implementing the changes. The government received over 400 responses and this document provides a summary of these. It also outlines the government’s response and next steps.

Original consultation

Summary

This consultation seeks views on reforms to the tax treatment of red diesel and other rebated fuels.

This consultation ran from
to

Consultation description

The government is serious about tackling climate change and improving the UK’s air quality. At Budget 2020, the government announced that it will remove the entitlement to use red diesel from April 2022, except in agriculture (as well as forestry, horticulture and pisciculture), rail and for non-commercial heating (including domestic heating).

The consultation seeks views on whether the government has overlooked any exceptional reasons why other sectors should be allowed to continue to use red diesel beyond April 2022. The document asks for views on the government’s proposals for implementing the changes announced at Budget, and is also seeking further information about the current end uses of other rebated fuels, such as non-aviation kerosene and fuel oil.

The best way to respond to this consultation is to download and complete the consultation response form below, and email it to: ETTAnswers@hmtreasury.gov.uk

Documents

Red diesel consultation submission form

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Published 9 July 2020
Last updated 3 March 2021 + show all updates
  1. Updated with Summary of Responses document and Detail of Outcome.

  2. First published.