CECA Cited In Parliamentary Debate On Red Diesel Rebate

Yesterday CECA was cited three times in a Westminster Hall Parliamentary debate on the impact of the removal of the rebate on red fuel for onsite plant and machinery use, due to come into force this April.

Civil Engineering Contractors Association (National) members welcome the move towards cleaner emissions, but this policy takes that option away because it also removes the tax incentive on greener fuels, such as Hydrogenated Vegetable Oil.

Carla Lockhart, the Democratic Unionist Party Member for Upper Bann, cited CECA’s research that has found that:

  • losing the red diesel rebate will cost the UK construction industry between £280 million and £490 million a year; and that
  • CECA members are deeply concerned about the heightened risk of fuel theft and subsequent fraud.

In his official response to the debate, James Murray, Shadow Financial Secretary to the Treasury, noted our concerns about the heightened risk of fuel theft and subsequent fraud and indicated support for measures to encourage the use of alternatives to diesel. He pressed the Minister on concerns raised about the detail of the proposed policy and its impact on the construction sector in particular.

As we look towards the implementation of the legislation, we will continue to work with HMRC and the wider industry to mitigate the impact of this policy change and manage increased costs to the public purse. If you are a CECA member and would like to input your views, contact CECA Director of Operations Marie-Claude Hemming.