MPA makes 'last ditch attempt' to delay red diesel reform

09/03/2022 | DOMINIC BROWNE

UK producers of construction and industrial mineral products have called on chancellor Rishi Sunak to delay the end of the red diesel rebate.

Ahead of the Spring forecast statement (23rd March 2022), the Mineral Products Association (MPA) has written to the chancellor in what they described as 'a last-ditch attempt to delay in the removal of the red diesel rebate'.

The Government's plans to remove the tax rebate on the red fuel used by construction businesses in their plant and machinery from 1 April are expected to cost industry up to £500m a year and each SME construction firm between £250,000 and £600,000.

MPA members argued that with 'no low-carbon alternatives to the heavy machinery the industry uses, removing the rebate will achieve no reduction in carbon emissions for years to come'.

Given the high levels of inflation, MPA has asked for the tax change to be delayed until new alternative equipment becomes available.

The move comes as senior figures in the highways sector raised fears about their three-year funding settlement, which froze maintenance cash at a time of significant inflation - thought to run to almost 20% in the roads sector.

The MPA also called on the Treasury for urgent action on soaring energy costs, made worse by the volatility in global energy markets following Russia’s invasion of Ukraine, and transparency on delivery of the Government’s infrastructure plans.

According to the MPA, the UK’s energy intensive industries face higher costs than EU competitors because of policy choices made by the UK Government and Ofgem.

As a member of the Energy Intensive Users Group, MPA has repeated its request for the chancellor to place UK industry on a level playing field with its European competitors.

It also called for more certainty of infrastructure investment, highlighting what it called the 'faltering' second Road Investment Strategy at National Highways.

The MPA did reiterate its welcome for the freeze in the Aggregates Levy announced at the Budget in Autumn and called for this to be extended beyond 2023.

Nigel Jackson, chief executive of MPA, said: 'Construction needs materials and producing materials requires long-term planning and investment, so our industry needs clarity on what’s in the pipeline for the next 10 or 20 years, not the next 10 months.

'For this year's Spring Statement, the priority must be the urgent measures to tackle domestic policy drivers of the UK’s high energy costs.

'The Chancellor has solutions in his power to place UK industry on a level playing field with European competitors and we urge him to act decisively this month.'

Robert McIlveen, MPA director of public affairs, added: 'Throughout the consultation on red diesel we made the case that there were no carbon emission savings available until the equipment is in the market at the level of power, range and cost to replace diesel, and when the associated infrastructure needed is available.

'These conditions are nowhere near being met. With inflation a growing worry, now is a dreadful time to increase the costs of essential materials for UK construction and manufacturing supplied by MPA members so we are calling for a delay to the removal of the red diesel rebate.'

Highways InProfile

latest magazine issue
Highways jobs

Senior bridge Engineer - WMF2212e

£47,181 - £48,226
You will be the key responsible engineer for this area and will also provide technical advice and guidance to our team Cumbria / Various
Recruiter: Westmorland and Furness Council

Streetcare Operative / LGV Driver - WMF2214e

£28,598 - £29,540
Westmorland and Furness Council is seeking to employ an enthusiastic and motivated LGV Driver / Street Care Driver Ulverston, Cumbria
Recruiter: Westmorland and Furness Council

Civil Enforcement Officer - WMF2221e

£28,598 - £29,540
Are you seeking an active and challenging role, part of a friendly and welcoming team? Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Bridge Engineer - WMF2219e

£42,839 - £44,075
We are currently seeking to recruit an experienced and enthusiastic Bridge Engineer Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Senior Public Transport Officer

£42,839 - £46,142
We are looking for an experienced public transport professional to become our Senior Public Transport Officer. Northamptonshire
Recruiter: North Northamptonshire Council

Principal Transport Planner (Strategy) (Fixed-Term)

£48,226-£51,356
We are looking for an experienced professional to join as a Principal Transport Planner (Strategy) Northampton, Northamptonshire
Recruiter: North Northamptonshire Council

Mobile Street Scene Operative

£24,796 to £25,989 per annum
The Waste and Street Scene department requires enthusiastic and committed mobile street cleansing operative. Northallerton, North Yorkshire
Recruiter: North Yorkshire Council

Senior Technician - Highways Design (2 Posts)

Grade 10 £35,422 - 38,730 per annum
An exciting opportunity has arisen within the Professional Services Section Derbyshire
Recruiter: Derbyshire County Council

Project Engineer External Contracts

Grade 11 £39,865 - 43,270 per annum
You will lead a team of Clerks of Works Derbyshire
Recruiter: Derbyshire County Council

Senior Technician - Clerk of Works

Grade 9 £32,347 - 34,317 per annum
You will supervise works on site and liaise with developers, contractors and internal teams Derbyshire
Recruiter: Derbyshire County Council

Hire Desk Operative

Grade 8 £29,719 - £31,691 per annum
Well-developed IT skills and an excellent working knowledge of the Microsoft Suite are required. Derbyshire
Recruiter: Derbyshire County Council

Streetcare Operative / LGV Driver - WMF2214e

£28,598 - £29,540
Applicants must hold a current full LGV Class C driving licence Cumbria
Recruiter: Westmorland and Furness Council

Roadworker Trainee LGV Driver (2 Posts)

Grade 6 £25,989 - £26,458 per annum
We’re looking for Roadworker/trainee LGV drivers Derbyshire
Recruiter: Derbyshire County Council

Roadworker/Driver (3 Posts)

Grade 7 £27,088 - £29,062 per annum
We’re looking for roadworker/drivers to be part of our team undertaking major highway, bridge Derbyshire
Recruiter: Derbyshire County Council

Senior Engineer - Public Realm

£28,624 - £36,124
We are looking for a Senior Engineer to support the development Huddersfield, West Yorkshire
Recruiter: Kirklees Metropolitan Council

Mobile Cleansing Operative

£24,796 to £25,989 per annum
We’re seeking a permanent Mobile Street Cleansing Operative to join our dedicated team serving a variety of urban and rural locations Harrogate, North Yorkshire
Recruiter: North Yorkshire Council

Roadworker/Driver

Grade 7 £27,088 - £29,062 per annum
We’re looking for experienced Roadworker/LGV Drivers High Peak, Derbyshire
Recruiter: Derbyshire County Council

Engineer - Hosting and Security

£35,412 to £39,152 p.a. (Grade 9)
A vacancy has arisen within our Hosting and Security Team for an experienced, enthusiastic, and flexible Engineer, with the aim of helping to ensure t Durham
Recruiter: Durham County Council

Senior Engineer - Highways Safety

£28,624 - £36,124
Senior Engineer - Highways Safety Huddersfield, West Yorkshire
Recruiter: Kirklees Metropolitan Council

Head of Parking

£86,274 - £89,667
Our borough is beginning a huge transformation. Redbridge, London (Greater)
Recruiter: Redbridge London Borough Council
SUBSCRIBE NOW

Latest Video

Subscribe to Highways today to ensure you keep your finger on the pulse of everything happening in the UK road network throughout the year.

SUBSCRIBE NOW