Government warned over red diesel rebate removal

By Aidan Fortune contact

- Last updated on GMT

The FSDF estimates that removing the red diesel rebate would cost the food industry £100m a year
The FSDF estimates that removing the red diesel rebate would cost the food industry £100m a year
The Government has been warned against proposals to remove a rebate for the use of red diesel in refrigerated vehicles.

The proposals, currently under consultation by the Treasury as part of the Clean Air Strategy, are designed to cut emissions, however the Food Storage & Distribution Federation (FSDF) has warned that this will cost the UK food industry more than £100m.

In a letter to Defra Secretary of State Michael Gove, FSDF chief executive Shane Brennan outlined the vehicles that rely on red diesel, particularly refrigerated vehicles that transport food, and how there are few or no alternatives to red diesel, depending on the size of the transport method.

Warned of the consequences

He warned that the consequences of the £100m costs to operators would eventually feed through to the price paid by the consumer, compound pressure on the food industry and hold back innovation in food distribution.

Brennan did applaud the sentiment of the Clean Air Strategy, pledging to work with FSDF members and suppliers of vehicles to come up with innovative alternatives.

He said: “We are fully committed to our responsibilities to find ways to reduce emissions and to playing our part in meeting the ambitions of the Clean Air Strategy. We understand why Government is considering removing the red diesel rebate for equipment like refrigerated units on delivery vehicles, but we urge Ministers not to do it.

‘Would not achieve the stated ambition’

“This policy would not achieve the stated ambition, which is to encourage businesses to switch to new ‘cleaner’ technologies. On the contrary, removing the red diesel rebate would impose unavoidable direct costs on the industry.

“This would not only prevent food distributors from being able to invest adequately in innovation, or even upgrade their equipment, but it would also drive up food prices on the shelves.”

Related news

Show more

Related products

show more

Packaging Machinery Report

Packaging Machinery Report

William Reed Business Media | 23-Jul-2018 | Technical / White Paper

Food manufacturers investing in new equipment and in a given specification of packaging materials will naturally expect both to be fit-for-purpose and...

Hygienic Drainage in food and drink manufacturing

Hygienic Drainage in food and drink manufacturing

Aco Building Drainage | 27-Jun-2018 | Technical / White Paper

Drainage is critical to hygienic performance in food and drink manufacturing and as the European Hygienic Engineering & Design Group states, it is...

Related suppliers


Post your comment

We will not publish your email address on the website

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Follow us

Featured Events

View more


View more