Amid reports that the Chancellor may remove rebated fuel next week in the budget, the NAAC has the following statement:
Agricultural contractors rely heavily on red diesel to supply essential farming operations to land managers and it is vital that this exemption is retained to maintain food production.
In times of huge uncertainty, alongside a wet autumn, the industry is already struggling with financial reserves and the removal of the lower fuel duty would be a devastating blow that could push many contracting businesses to fail. By almost doubling fuels costs this would potentially add hundreds of thousands of pounds of input costs each year which is currently unsustainable.
There is no commercial, alternative ‘green’ fuel to replace diesel in agricultural machinery, removing any choice for the industry to switch fuels.
Contractors are effectively farmers without land and they are now an integral and essential part of the vast majority of farm businesses.