Global events will push the price that construction pays for diesel even higher and with inflated red diesel prices not too far from pre-pandemic white diesel prices, now is not the time to force industry to pay ‘at the pump’, white diesel prices. The NFB is therefore calling for the Government to defer the red diesel rebate for twelve months and consider a medium term plan on how we transition.
|Download guidance here|
The NFB has sent a letter to BEIS Treasury and Chancellor Rishi Sunak but by emailing your MP using the templated letter below (or words of your choosing), along with the NFB campaign letter which can be downloaded here, we can exert maximum pressure and keep construction away from the energy cliff edge.
To find the name and email address of your local MP, please click here and search using your, and/or your businesses email address.
[MP full name]
[Email address/Address is sent as letter]
Re: Twelve-month deferral on the decision to remove the red diesel rebate
I hope this letter finds you safe and well in these difficult times.
I am writing to ask you to represent me and others in your constituency by campaigning the Government to defer the removal of the red diesel rebate for twelve months, which is scheduled to come in on April 1 2022.
The full letter detailing the concerns is included but industry, specifically construction, cannot afford the rise in energy costs which compared to pre-pandemic levels, will see the cost of diesel rising by 163%.
Treasuries own data to justify their decision expected fuel costs for those using red diesel to rise from a median of £30,000 to £51,300 but on today’s prices, this figure is £78,900. Due to the war in Ukraine, this has risen by £2,000 in two days and prices increased again today as the US banned Russian oil and the UK committed to phasing it out.
Construction operated throughout lockdown, so paid the taxes which helped fund furlough and which it broadly didn’t take. It also helped secure many of the 2.7m jobs in our industry. However, with building energy costs rising by almost thirty percent, we cannot absorb the pre-pandemic 163% rise on fuel and have already been struggling with the 47% rise on red diesel.
We are also desperately concerned about fuel theft. Its growth has correlated with fuel price rises, only 1% is prosecuted and overnight, our supplies will be indistinguishable from petrol station fuel.
Construction is the backbone of Britain and with 99% of our sector being SMEs and already with low margins, we are heading for a fuel affordability cliff edge.
As my MP, I hope you are committed to ensuring that British business, especially locally employers, come first, and you will support the campaign to defer the removal of the red diesel debate for a period of twelve months.
I look forward to hearing from you on this pressing issue.
(Your name and/or company)
[Your contact details, including your address]