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

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.

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