Future Ready Fuel: Call for Chancellor to ‘axe the tax’ on renewable liquid heating fuels in the Budget

19th February 2024

UKIFDA News Future Ready Fuel Tanker

The chancellor could achieve a quick win amongst rural voters by scrapping the tax on renewable liquid heating fuels in his upcoming budget.

That’s the message from the Future Ready Fuel campaign which has written to Jeremy Hunt to ask him to maximise the impact of current government plans to introduce a renewable liquid heating fuel obligation by correcting the disparity on duty between renewable liquid fuels and fossil fuels when used for home heating.

On behalf of the Future Ready Fuel campaign, OFTEC CEO Paul Rose and UKIFDA CEO Ken Cronin said: “It’s increasingly clear the only solution to achieving the UK’s net zero ambitions is a pragmatic one. The diversity of off-grid housing stock lends itself to a multi technology solution. It’s not a case of one size fits all.

“Renewable liquid fuels offer an affordable and practical solution for the UK’s 1.7 million oil heated homes to drastically cut their emissions. The Chancellor missed the chance to correct the duty disparity when these fuels are used in home heating in his Autumn Statement, and the Budget is the last opportunity for the current Government to axe this unfair rural tax. It doesn’t make sense for the tax system to penalise the use of low carbon fuel for home heating when kerosene attracts a zero rate.”

Read the complete news article published by the Future Ready Fuel campaign here.

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