The Royal Association of British Dairy Farmers (RABDF) has welcomed news in today’s budget (Wednesday 11 March) that the red diesel subsidy will remain for the agricultural sector.
The Association had previously sent letters to Secretary of State for Environment, Food and Rural Affairs, George Eustice, as well as Mr Sunik and the Treasury, warning them of the implications removing the subsidy would have on dairy farmers.
The news means the duty levied on red diesel will remain at 11.1p, compared to 57.7p for standard fuel.
RABDF Chairman Peter Alvis said: “We are delighted the Government has listened to industry calls to keep the subsidy on red diesel in place for the agricultural sector.
“Although agriculture only accounts for 7% of the total lower rate fuel use in the UK, the knock-on effects would have been felt right throughout the supply chain- including increased costs for consumers.”
Mr Alvis also welcomed the 2p/litre drop in red diesel prices seen at the start of the week. He said: “This week could have painted a very different picture for British dairy farming, but thankfully, the levy coupled with a drop in prices is the best outcome we could have wished for.”