TRACTORS attending ploughing competitions and farm shows can continue to use rebated red diesel to do so, the government has agreed

During the ongoing HMRC clampdown on rebated fuels, mainstream agricultural use of red diesel had already been allowed to continue, but it had been widely reported that the taxman would no longer look kindly upon its use for events perceived as recreational or not central to the business of farming.

This prompted an outcry from rural communities, with ploughing matches and farm shows fearing for their future, as tractor drivers faced having to drain their tanks of red diesel and use road fuel if they wanted to participate. It also raised questions for the many farmers who use their agricultural tractors to help clear roads during bad weather.

But after no small amount of discussion amongst rural politicians, the matter has now been clarified via a question and answer in the Houses of Parliament.

Earlier this month, John McNally, SNP MP for Falkirk, tabled a question asking the Chancellor of the Exchequer if he will make it his policy to 'reconsider the Government's changes to the entitlement for farmers' use of red diesel, so that farmers are not required to drain tractors' tanks to refill with white diesel for a single day of ploughing competition, and the following day drain the tank of white diesel and refill with red diesel'?

This week, Mr McNally got his answer from Helen Whately, the Conservative MP for Faversham and Mid Kent, who is currently Exchequer Secretary.

"Agricultural vehicles will be entitled to run on rebated fuel after April 2022 for purposes relating to agriculture, horticulture, forestry and fish farming. They will also be able to use rebated fuel when cutting verges and hedges that border a road, clearing snow, gritting, and clearing or otherwise dealing with flooding.

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"The activities accepted as falling within the definition of agriculture, horticulture and forestry are defined in HMRC Excise Notice 75. As agricultural shows and ploughing matches provide information and education that benefits agricultural purposes, the Government considers that running or participating in these activities are purposes relating to agriculture, for which rebated fuel may be used in qualifying vehicles and machines, and will be updating Excise Notice 75 accordingly. Rebated fuel can also be used to travel to and from where the vehicles or machines are to be used for these activities."

Mr McNally's colleague, Gordon MP Richard Thomson, had previously raised the matter with Chancellor of the Exchequer Rishi Sunak in January and took the issue to floor of the House of Commons during Business Questions last month, obtaining a ‘sympathetic’ response from the then Leader of the House Jacob Rees-Mogg.

Welcoming the 'change of heart', Mr Thomson said: “This is excellent news for the organisers and participants in ploughing matches and other activities affected by the original ruling, but in reality things should never have got to this stage because we have been here before in 2008 when the UK Government was forced to back down over a threat to agricultural shows using red diesel.

“It seems no lessons were learned from that time and a lot of needless concern has been caused to event organisers which was entirely avoidable, not to mention the costs involved as the UK Government now needs to go back and clarify the regulations being used by HMRC.

“It tells us a lot that the UK Government tried the same trick as it did over a decade ago and was, once again, forced into a humiliating climbdown," said Mr Thomson. " However, I’m grateful to those constituents who raised this matter with me which meant I could go into battle on their behalf and I’m delighted at this positive outcome, albeit I shall await the fine detail coming forward.”