Public Buildings: Red Diesel
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of permitting community owned facilities to use red diesel for the purposes of (a) heating and (b) electricity generation.
Answered by James Murray
In 2020, the previous Government announced that the red diesel entitlement would be withdrawn from most sectors from April 2022. Following consultation in 2020-21, the previous Government confirmed that some sectors would retain the entitlement to use red diesel, including non-commercial heat and power generation, and domestic heating. A machine or appliance may use red diesel where 75% or more of the electricity or heat generated is for premises, or parts of premises, that are not used for commercial purposes.
The Chancellor makes decisions on tax policy at fiscal events in the context of public finances.
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