§ Matthew TaylorTo ask the Chancellor of the Exchequer what estimate he has made of the cost to public funds of fuel duty rebates and reduced rates of duty on(a) red diesel and (b) kerosene in the last three years; and if he will make a statement. [74774]
§ John HealeyThe most recent estimate of loss in revenue to the Exchequer resulting from the duty rebate given to "red diesel" is approximately £3.3 billion in each of the past three years, based on the difference between the duty rate for rebated gas oil and that for heavy oil used as a road fuel. Such estimates for kerosene currently do not exist.
The estimates for red diesel represent the maximum cost to the Exchequer since they do not allow for a reduction in demand that might be expected if the full duty rate were levied on red diesel.
It is our policy to review rebates and reduced rates as part of the Budget process. In making his judgment, the Chancellor of the Exchequer will consider all relevant economic, social and environmental factors.