On behalf of Derbyshire-based businesses operating nationally within the metal recycling, building, construction and demolition sectors, as well as many others, Donald Ward, operations director at metal recycling and waste management specialist, Ward, has written to the Right Hon, Rishi Sunak MP, the Chancellor of the Exchequer to leverage support in managing spiralling energy costs in the next budget.
The independent, fourth generation family business, which employs over 400 people and has an annual turnover of £200 million, has proposed that the changes UK Government is making to the taxation of red diesel, or rebated fuel, are postponed for at least 12 months. This they believe would offset additional challenges faced by businesses as we emerge from a global pandemic, an ongoing Brexit situation and the worldwide economic impact of sanctions on the former Soviet Union.
Under the existing plans, from 1st April 2022, it will no longer be permitted to use rebated red diesel in most types of plant, machinery, and construction equipment. Instead, all equipment must use diesel or biofuels, on which the full rate of duty has been paid. Businesses are expected to face cost increases of more than 140%, given the current price of diesel.
In the letter, Donald Ward, asks: “In the short term and given the threat nationwide to all businesses and the impact on wider industries, we are writing to request you implement an extension to the entitlement to use red diesel for 12 months or a time the energy markets have settled.
“If this implementation is not possible, could we suggest a phased approach as we are now in a completely different economic climate, and this could be disastrous for many waste and resource operators, construction and demolition businesses and result in unintended consequences impacting the environment, the wider economy and employment levels.”
In support of Ward’s plea, Rebecca Galley, Managing Director at hydraulic and industrial hose specialist, Hydroscand UK, added: “We sincerely hope this is taken note of. The business environment is like none seen before. The government should be doing everything possible to support businesses.”
