Red Diesel Update
In December, we reported that the pre-budget report brought us news on red diesel which was expected but not necessarily welcome.
The document highlighted that further work was to be carried out reviewing tractor use, although it accepted that if off-road vehicles use the roads incidentally they will be entitled to use rebated fuel. However, there were also clear statements that it was the intention of Customs to remove rebated fuel from our mobile seed and mobile feed vehicles, based on the fact the units are not designed for off-road use and use the majority of their fuel to travel between sites, rather than working in the field.
Since the report was published, the NAAC has taken a very proactive role pressing our case that we are effectively ‘farmers without land’. This appears to have been accepted.
Meeting Customs
On 23 January, the NAAC went to London to a meeting chaired by HMRC, attended by the DVLA and Treasury and including representatives from the farming union, machinery manufacturers and road haulage sectors.
Following extensive discussion, the NAAC has suggested that an industry ‘Highway Code for Agricultural Vehicles’ is needed to ensure that everyone knows exactly what we can and cannot legally do. We were assured further consultation with the NAAC would be carried out before any changes were made.
Agricultural Engines — Problems for Feed and Seed Mobiles
This is where discussion became most difficult for the NAAC, as it was re-affirmed that, despite our extensive submission, there was an intention to remove rebated fuel from mobile seed and feed mobiles.
The NAAC is lobbying hard on behalf of contractors and we have vociferously pointed out that it is totally unacceptable to target our industry in this way. In addition to meetings and correspondence with Customs, the NAAC has written to the Treasury and Department for Transport expressing our concern in the strongest terms.
We will keep members fully informed.