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Fuel Oil: Excise Duties

Question for Treasury

UIN 84961, tabled on 4 September 2020

To ask the Chancellor of the Exchequer, what assessment he has made of the compatibility of the heavy mineral oil excise duty reclamation scheme H049 with the Government's climate change policies.

Answered on

10 September 2020

HMRC estimates that around 13 million litres of diesel is sold under the horticultural producers’ relief per year.

The relief exists because of the particular climatic conditions within the UK, allowing UK producers to compete with producers from more temperate climates. In allowing them to compete on this basis, the UK is less reliant on food imports, with transportation having its own environmental costs.

The horticultural producers’ relief scheme has carried a negligible cost to the Exchequer for the last six years, reflecting the very small amount of diesel used under this relief. HMRC publishes estimated costs of non-structural reliefs here:

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