The Mineral Products Association (MPA) has written to the UK Chancellor, Nadhim Zahawi, calling for urgent action to tackle the country’s energy crisis and alleviate the burden on its construction industry. Four steps the Treasury could take have been identified by the MPA, including allowing temporary deferral of VAT payments, to reinstate or replace the red diesel rebate to cut fuel duty, extend the freeze on Aggregates Levy indexation beyond April 2023, and take measures to tackle costs for energy intensive industries, particularly cement and lime.
Robert McIlveen, director of public affairs at the MPA, said, “Our members are seeing very significant, rapid price increases in their fuel and energy costs, putting huge pressure on them and their onward supply chains. Given the essential nature of the industry’s products and their fundamental role in the UK economy, it is vital for the Chancellor to address the pressures the sector is facing.”
Earlier this year the former Chancellor removed our industry’s right to use red diesel. While in the long term we are committed to transitioning to non-diesel equipment, there are no immediate alternatives so not only are we facing additional cost, but removal of the rebate has turned out to be very badly timed. Action on fuel duty and VAT deferrals would be extremely helpful, as would longer term certainty on the Aggregates Levy. Progressing the support for energy intensive industries that is already under consideration by the Government is also vital.”
