Industry relief as Government announces red diesel entitlement is to remain
Following the budget announcement which retains red diesel use for agriculture, the NAAC has the following statement:
The industry breathed a collective sigh of relief as it was announced that the government will not remove the entitlement to use red diesel for agriculture.
Whether a one-man business or a multi-million pound agricultural contracting business it was very clear that a change in the red diesel use would have been devastating for the sector.
‘At a time of massive uncertainty, following a grim, saturated autumn and winter, contractors will be relieved that they can continue business as usual,’ commented Jill Hewitt, NAAC Chief Executive. ‘They do not have the margins to absorb what could have been a doubling of fuel prices, with businesses already struggling with cash flow after losing winter cultivations work, plus the knock on impact that will have if spring crops are not drilled.’
The NAAC now urges contractors to take a step back and look hard at their finances. The threat of the change in fuel costs has forced many to do some difficult calculations and it is important that individuals make calls, to suppliers and customers, if debts are outstanding to get payment plans in place following the unprecedented weather. Communication is key and it is vital that everyone works together to sustain the industry and maintain UK food production.