In the run up to the Budget, rumours were circulating that the reduced duty rate on red diesel – the fuel used by most farmers, construction firms and other off-road plant machinery – was to be abolished. Given that red diesel only attracts 11.4p per litre in tax as opposed to 57.95p per litre for standard diesel and the amount of fuel that special types and agricultural vehicles typically use, this proposed change was met with alarm.
In the event this turned out to be one of those classic pre-Budget exercises in testing the water. In his speech, the Chancellor left rates unchanged but did announce that changes would be coming in 2023, but that agricultural users would continue to enjoy an exemption.
Construction industry bodies such as the Construction Industry Training Board (CITB) have been quick to condemn these plans saying that two years isn’t sufficient time for their members to prepare. Environmental groups have welcomed the decision and have pointed to the increased viability of electric commercial vehicles.
If you’d like any help insuring your farm, plant or special types vehicles, then please get in touch with your local Coversure office today. They will be happy to give you all the help you need to protect your assets.