Wrong Time for Red Diesel Rebate Removal?

Wrong Time for Red Diesel Rebate Removal?

Author
Discussion

Scotty2

Original Poster:

1,317 posts

272 months

Thursday 10th March 2022
quotequote all
This has gone a bit under the radar, but as from 1st April (no, really!) the rebate on red diesel is being removed except on some exempted uses.

Construction is not exempt, so hire charges on cranes, and plant plus running cost will increase significantly at a time when fuel costs are skyrocketing, and the general economic crunch is just biting.

The excuse is to encourage "green" stuff and to use electric.

Now, there was a thread that I can't find that started warning us of this but I think it is the worst possible time to hit industry with large increases in running costs.

Our crane hire company has just sent out a reminder that the hire costs will be increasing because of this.

Our Telehandler will be just used for "snow clearance" now as that is exempt...

I think this is a really bad time for increasing inustry costs.

Call for a re-think?

Fish

3,992 posts

288 months

Thursday 10th March 2022
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The bigger issue is theft from site.. now it will all be white on sites I'm expecting carnage!

Biggy Stardust

7,068 posts

50 months

Thursday 10th March 2022
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The government committee looking into this decided that a simple answer was to "just use less diesel". Brilliant. I'm amazed we never thought of it before other than it means "just do less work".

randlemarcus

13,588 posts

237 months

Thursday 10th March 2022
quotequote all
Fish said:
The bigger issue is theft from site.. now it will all be white on sites I'm expecting carnage!
Can you buy the dye they put in Red, to make it less attractive to those who see it as a new perk?

unident

6,702 posts

57 months

Thursday 10th March 2022
quotequote all
randlemarcus said:
Can you buy the dye they put in Red, to make it less attractive to those who see it as a new perk?
Might be a bit of a problem if you get a spot check by HMRC

catso

14,844 posts

273 months

Thursday 10th March 2022
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Clearly not a good time for any of the upcoming increases/takes but I can't see that stopping the powers that be from implementing them anyway.

randlemarcus

13,588 posts

237 months

Thursday 10th March 2022
quotequote all
unident said:
randlemarcus said:
Can you buy the dye they put in Red, to make it less attractive to those who see it as a new perk?
Might be a bit of a problem if you get a spot check by HMRC
Good point, well made. Maybe in purple? hehe

Saleen836

11,382 posts

215 months

Thursday 10th March 2022
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Funny how Golf Clubs are to be exempt from the law change regarding red diesel scratchchin

JuanCarlosFandango

8,182 posts

77 months

Thursday 10th March 2022
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It would be a good time to reduce fuel duties all round. 57.95p a litre plus VAT, means it would have just crossed £1 a litre.

andy43

10,278 posts

260 months

Thursday 10th March 2022
quotequote all
They’re just pushing towards renewable energy.
JCB do an electric digger - review here wink
https://www.youtube.com/shorts/hBwcwnKHVJA

Biggy Stardust

7,068 posts

50 months

Friday 11th March 2022
quotequote all
andy43 said:
They’re just pushing towards renewable energy.
JCB do an electric digger - review here wink
https://www.youtube.com/shorts/hBwcwnKHVJA
Electric digger- charged by a diesel generator, perhaps?

Leptons

5,297 posts

182 months

Friday 11th March 2022
quotequote all
So if you’re digging out on a new site, how are you supposed to charge your electric diggers? Or are you expected to hire a massive diesel generator to charge them before a supply and charge point goes in?

rofl

xstian

2,013 posts

152 months

Friday 11th March 2022
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If you look at the legislation, it only really effects the construction industry. I don't necessarily agree with it, but the housing market is booming, I guess they thought they can afford it. I wonder how much the government think this is worth, it must be pretty small in the scale of things.

Francy555

250 posts

200 months

Friday 11th March 2022
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This rebate removal has sweet FA to do with NET Zero or other bovine excrement...

Its an easy step the government can put in place to immediately gain extra tax revenue to pay for the covid crisis.- plain and simple!!

There is no viable alternative to diesel usage in the heavy equipment sector - JCB and others - i work for an OEM in the Quarry and materials handling sectors - are trying electric but these are only suitable in machines that we would expect to have a short duty cycle.

In machines that need to work 14hrs plus per day - diesel is the only current option available.

the cost to the industry and the wider economy is going to be astronomic- food prices will rise and before everyone says agriculture can still use red , the agricultural sector depends heavily on inputs from suppliers that no longer can use red diesel, so their input costs will go up...

Building an new shed/ milking parlour/ slurry tank on the farm - all the construction machinery have to use clear fuel
the quarry that supplies the aggregates & concrete must use clear fuel
the builders merchants yard forklifts must use clear fuel

if getting animal feed delivered - the donkey engine on the bulk blower must use clear fuel..

All theses costs cannot be absorbed by farmers - their all ready getting hit by record input costs so food prices will rise significantly... on top of what they are doing at the moment due to the energy crisis and the war in Ukraine.

This will back fire spectacularly on the government- it could even be the straw that finally brakes the camels back!!


Gecko1978

10,341 posts

163 months

Friday 11th March 2022
quotequote all
We have a huge state sector the people within it need to be paid which comes from taxes. We can't cut tax now to ease the burden because we have to pay these people. A roll back of the state might take 30 years. So everyone pays more and that is that. 5th richest nation in the world and most people live month to month all thier lives. Something we should be proud of....

B235r

406 posts

55 months

Friday 11th March 2022
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It's ridiculous going to cost a fortune in normal times let alone at the minute with diesel being nearly £2 a litre

TCX

1,976 posts

61 months

Friday 11th March 2022
quotequote all
unident said:
randlemarcus said:
Can you buy the dye they put in Red, to make it less attractive to those who see it as a new perk?
Might be a bit of a problem if you get a spot check by HMRC
Blue dye available,Biffa waste used to use it

TCX

1,976 posts

61 months

Friday 11th March 2022
quotequote all
B235r said:
It's ridiculous going to cost a fortune in normal times let alone at the minute with diesel being nearly £2 a litre
Currently using 1000 litres week on my machine,lol eco mode,4 other machines here plus two large generators using roughly same time

Zarco

18,403 posts

215 months

Friday 11th March 2022
quotequote all
Scotty2 said:
Our Telehandler will be just used for "snow clearance" now as that is exempt...
Good luck with that laugh

Agree it is poor timing.

Biggy Stardust

7,068 posts

50 months

Friday 11th March 2022
quotequote all
Gecko1978 said:
We have a huge state sector the people within it need to be paid which comes from taxes. We can't cut tax now to ease the burden because we have to pay these people. A roll back of the state might take 30 years.
You misunderstand- we need all of those people. Some public sector PHers explained this on another thread. We can't possibly get rid of the 5-a-day coordinators, advisory groups, middle management deadwood, rulemakers, rulecheckers, auditors and other B-ark types.

The concept of a world without parasitic layers of public sector is unthinkable.