The Chancellor has been warned that the red diesel ban is ‘counter intuitive’ and presents ‘a tangible threat’ to the Government’s waste strategy.
The United Resource Operators Consortium (UROC) has written to Mr Sunak calling for a phased approach to the removal of the entitlement to use rebated red diesel in mobile, static and process plant and equipment.
Due to come into effect in April, the removal of the entitlement will impact waste management, construction and mining. Agriculture, horticulture, fish farming and forestry sector operators will be exempt.
UROC argues that the landscape is now ‘incredibly different’ to when the policy change was first proposed. The waste sector has suffered from volatile price pressures, a consumer energy and cost of living crisis, disruption to supply chains and shortages resulting in bottlenecks.
The removal of the entitlement would have a negative impact on the finances of waste operators and their customers. UROC has calculated that paying the cost differential between red and white diesel would represent a ‘staggering’ 55% increase, a cost increase that would be passed on to local authorities.
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