Calls for clarity on recent Budget announcements


Last week’s budget announcement brought relief to agriculture, rail, fish farming and non-commercial heating with all being exempt from the abolishment of the red diesel subsidy.

Whilst this news was well-received by UKIFDA, CEO Guy Pulham was ‘disappointed that the red diesel fuel duty relief freeze was not extended to the construction industry especially as a large amount of infrastructure projects were announced in the budget.’

Impacting on construction and off-grid households

“The increased costs faced by the construction industry are likely to slow down any improvements made across the UK, as well as having a knock-on effect to fuel oil distributors who rely on custom from the industry, added Guy.
“Any increase will have a major impact on the construction industry. Although the increase won’t come into effect for two years many of the large infrastructure projects will still be ongoing in two years.”
“We will continue to lobby the Government on this as losing the red diesel rebate could cost the UK construction industry several millions a year.”

A lack of support for biofuels and home energy efficiency

In response to exchequer funding of £100 million in 2022/23 and 2023/24 to support grant-funding for households and small non-domestic buildings to replace fossil fuel heating, Guy Pulham commented.
“Achieving net zero is vitally important and an ambition UKIFDA wholeheartedly supports – we believe that liquid fuel, and biofuel in particular, can be part of the solution which is why we urged the Chancellor to bring in investment measures for the UK biofuels industry in the budget.”
“The lack of support for home energy efficiency improvements such as insulation and double glazing is concerning,” said OFTEC chief executive Paul Rose.
“Without any support for energy efficiency improvement measures, the £100m which could be made available, subject to consultation, in both 2022/23 and 2023/24, to help homeowners install heat pumps and biomass technologies, along with the extension of the domestic RHI to 2021/22, will only really benefit those already living in well-insulated homes or those able to fund the necessary fabric improvements themselves.”

Clear support for carbon capture

“There were a number of subtle positives announced by the Chancellor in today’s Budget in connection with energy and the low carbon economy,” said Darren Walsh, energy partner at DWF.
“There is clear support for a carbon capture and storage power station by 2030 but there remains a lack of clear direction for new nuclear build which, as part of the overall energy mix, is essential in meeting the country’s decarbonisation targets by 2015 (or earlier).”

Clarity on electric vehicles

“Introducing first year allowances to support the uptake of zero emission vehicles, hydrogen refuelling infrastructure and ultra-low emission vehicles will support the decarbonisation of road transport,” said Frank Gordon, Head of Policy at the REA.
“What’s needed now is clarity, particularly on the role the Government will play in supporting rapid charging roll-out along the motorway network, and on what is to happen to the existing home and workplace EV charging grant schemes due to expire later this year.