Builder says law changes will cost £200,000

  • Builder says law changes will cost £200,000



    New rules restricting the use of red diesel could cost companies thousands, businesses and charities say.


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    A Carmarthenshire-based building firm said it will cost them an extra £200,000 in annual fuel bills.


    There are also concerns that the new restrictions will hit fundraising tractor runs in rural areas.


    The HMRC said the new restrictions, beginning on 1 April, were designed to help meet "climate change and air quality targets."


    Red diesel, which is dyed white diesel so it is easily identifiable, is taxed at a much lower rate. The fuel duty for red diesel is 46.81 pence per litre, less than standard white diesel.


    It will no longer be permitted in the construction industry to power diggers and generators, white diesel will now have to be used.


    Dafydd Jones, from the TRJ firm in Ammanford has called on the Treasury to delay the introduction of the new rules after two challenging years.


    He said: "It means an additional outgoing for us of £200,000 per annum on top of what we already spend on fuel.


    "In the last 12 months we've spent in the region of £750,000 on both road going fuel and red diesel, when you add on the additional £200k, we're nearly £1m.


    "The Treasury is going to gain a hell of a lot of income from the industry, across the board."


    Mr Jones' MP, Jonathan Edwards, said he will raise the changes with the Treasury.


    A spokesperson for the HMRC said: "At Budget 2020, the government announced that it would remove the entitlement to use red diesel and rebated biodiesel from most sectors from April 2022 to help meet its climate change and air quality targets.