UK Chancellor Announces Consultation to Remove Red Diesel Entitlement

In today’s Spring Budget announcement, Chancellor Rishi Sunak has shared plans to review the current use of red diesel. 

 

The government is set to consult with red diesel users to determine whether continued access to the fuel is justifiable. The consultation will be conducted with a view to remove the entitlement to red diesel use, except for agricultural, rail and non-commercial heating purposes by April 2022.

 

Commercial boats on open waters, including ferries and fishing boats, will remain entitled to the Marine Voyages Relief so will not face a charge increase if the entitlement to use red diesel is revoked. 

 

This decision has been taken by the Chancellor with the intention to incentivise businesses to improve energy efficiency and to investigate greener alternatives where possible.

 

The RYA believes that while red diesel remains the primary and often only fuel available at the waterside it should continue to be available to recreational boaters in the UK for the purpose of propelling a private recreational vessel. HMRC have confirmed there will be a consultation in the spring and the RYA will be working with other significant stakeholders to make a strong representation on behalf of recreational boaters. Although details of the consultation have yet to be set out, the RYA remains fully engaged with the debate surrounding the continued availability of diesel for private recreational craft at the waterside.

 

The Cruising Association's assessment is that, for now, private pleasure craft should continue to use Red Diesel as they currently do since it is still the only easily available diesel fuel. CA Members, and other sailors, might wish to follow the CA's advice on using Red Diesel when sailing to EU State waters in this coming season.

 

The CA's Regulations and Technical Services (RATS) Group has already spoken to the Treasury on this issue and HMRC has said they will shortly continue their contact with us (and other interested groups). This will allow the CA to continue discussions on the future use of Red Diesel by private pleasure craft. It will also ensure that there will be satisfactory solutions to all of the known problems arising from this change to marine diesel for all recreational uses throughout the United Kingdom.