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Cross-sector letter sent to urge Chancellor to review tax treatment for red diesel

Cross-sector letter sent urging Chancellor to review tax treatment for red diesel, and to ‘adopt a phased approach for the removal of entitlement to use rebated (red) diesel’.


Cross-sector letter sent to urge Chancellor to review tax treatment for red diesel f

The letter, dated 14th March, was sent by the United Resource Operators Consortium (UROC) and signed by 12 sectors; the Chartered Institution of Wastes Management (CIWM), the Vehicle Recyclers Association and the British Metals Recycling Association to name a few. It states that “the use of red diesel is imperative for recycling with the majority of plant and machinery running off diesel-powered engines. There is not yet any market-ready kit using alternative fuels to replace that in existence.”

It also states that “operators will inevitably have to try and pass the enormous cost on to customers” and by passing on these costs to consumers, it will have an adverse effect with a “high likelihood of rising environmental crime. Adding more burden to the legitimate waste industry will open the door for unscrupulous operators and result in increased flytipping and serious organised crime.” 

It also adds that ‘time is of the essence’, as the entitlement to use red diesel will be removed entirely on 1st  April 2022, therefore, the signees request a review of tax treatment for red diesel as soon as possible.

To read the full letter click here.


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Owain Griffiths

Owain Griffiths

Head of Circular Economy at Volvo Cars

Owain joined Volvo Cars in June 2021 to lead Circular Economy in the Global Sustainability Team. The company has committed to being a circular business by 2040 and has financial, recycled content and CO2 based targets for 2025, all of which Owain is working across the company to make happen. Owain previously worked for circular economy consultancy Oakdene Hollins where he advised businesses on evidence led circular economy implementation. 

Turning into a circular business and the importance of vehicle reuse and recycling.

The presentation will cover the work Volvo Cars is doing to achieve 2025 but mainly focus on the transformational work towards 2040 and the business and value chain changes being considered. Attention will be paid to the way vehicles are being dealt with at the end of life and the complexities of closing material and component loops. Opportunities and challenges which Volvo Cars is facing will be presented including engagement with 3rd parties and increasing pressure from stakeholders.

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