The Northern Ireland Food and Drink Association has said that the move will lead to significantly increased costs for chilled and frozen transport, with no additional environmental benefit, and amounts to a ‘tax on food’.

Red diesel will only be allowed for use in agriculture, rail transport and non-commercial heating.

Michael Bell, Executive Director, Northern Ireland Food and Drink Association (NIFDA) said: “This is not about the government making the food supply chain more sustainable. There is no difference in terms of environmental impact between red or white diesel, and in the absence of commercially viable alternatives for refrigeration this move amounts to a tax on food.

“The food supply chain is not in a normal position at present and the whole supply chain is struggling to keep a lid on prices. Further taxing food distribution in this way at this time could have serious consequences not just for businesses here, but for consumers too.

“The war in Ukraine has caused a serious ripple effect on the global food system, causing supply chain disruption and price increases. Fuel prices are hurting consumers too, particularly in Northern Ireland where we have some of the most vulnerable people in the United Kingdom. Pressing ahead with a tax on food when families across the UK are experiencing a cost of living crisis will have devastating consequences.

“I raised this issue with Northern Ireland Office minister Conor Burns last week, and NIFDA will continue to press the government to see sense on this issue.”

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The guidance on ‘Using rebated fuels in vehicles and machines’ (Excise Notice 75) has now been amended and will allow tractor runs, ploughing matches and agriculture shows to continue as activities accepted as ‘purposes relating to agriculture, horticulture and forestry’. 

The updated guidance states that activities falling within the definition of agriculture will include ‘running or participating in events which provide information and education that benefit agriculture, horticulture or forestry, including taking part in charitable activities that promote these industries’.

UFU deputy president David Brown said, “HMRC has made the right decision by including tractor runs, in addition to shows and ploughing matches as activities that provide information, education and raise money for charity. This will be well received by our members and rural communities that host tractor runs and many other agri events to raise vital funds for charities across Northern Ireland. 

“Earlier in the month, HMRC backtracked on changes to red diesel usage rules, to include ploughing matches and agricultural shows but left out tractor runs. We outlined our disappointment to HMRC that tractor runs organised as charity events or for educational purposes, were not included in this amendment and it’s encouraging that they reviewed this position following pressures from the industry and politicians. It’s good that common sense has prevailed and our rural communities can continue to raise essential funds through tractor runs and other agri events.” 

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