CPA Responds to Chancellor’s Announcement of Abolition of Tax Relief on Red Diesel

Following today’s Budget unveiled by ChancellorRishi Sunak, Kevin Minton, Chief Executive of the Construction Plant-hire Association (CPA) has responded

We are very disappointed that the Chancellor has chosen to abolish the tax relief on red diesel. This sends out totally the wrong message to the construction industry – just at the point when the Chancellor announces an increase in infrastructure spending.

Abolishing the tax relief on red diesel will undermine the government’s own plans, add unnecessary cost to projects and create doubt for many plant-hire companies already operating in a highly competitive industry. Whilst this will not come into effect for another two years, we urge the Chancellor to engage now with the industry to understand how the subsidy is used and the efforts the plant-hire industry is making in adopting cleaner, greener engines and new technologies.

At a time when business investment remains weak, this move will undermine the construction sector at the point when it is meant to be upskilling, investing in new technology and planning for the future.

Kevin Minton
Chief Executive Officer, Construction Plant Hire Association

The abolition of the red diesel rebate will have significant financial implications for the construction sector as it will mean that users of diesel powered construction plant machinery will pay an extra 47 pence on every litre of diesel used.

The CPA works with government departments and agencies, local authorities, construction clients, private companies, other trade associations, and third sector organisations, on issues including employee health and safety, machinery standards and emissions control, public safety and road transport, skills and employment.

Read more of the latest news.

Click here to read Plant Planet Magazine online.

Follow us on Twitter for updates on the go.