Mixed news on fuel taxation for farming

Rural communities are disproportionately impacted by fuel increases and it is vital to ensure people can continue to live and work in rural Scotland

While the Chancellor's cut to fuel duty is welcome, huge pressure remains on the cost of living and working in rural Scotland.

Commenting on the chancellor’s spring statement, Scottish Land and Estates, membership organisation for landowners, rural businesses, said it was particularly concerned about the cost of rebated fuel for agriculture.

“While taxation on this fuel is lower, the price seems to have disproportionately risen in comparison to DERV, and we are concerned as agricultural businesses are seeing companies unable or unwilling to offer prices before delivery,” said the SLE’s head of policy, Stephen Young.

“This lack of transparency takes competition out of the market and could further increase costs.

However he welcomes the abolition of VAT for five years on energy efficiency measures such as solar panels, wind turbines, and heat pumps,stating it would help rural businesses at a time of soaring energy bills.

"People and businesses are facing a real cost of living crisis more broadly, with basics like food increasing in price. This highlights the importance of being able to grow more of our own high-quality, affordable food in this country – something rural Scotland does well – and the importance of having our food producers supported by governments in Holyrood and Westminster."

Last week NFU Scotland called for all duty to be abolished on agricultural fuels as an emergency measure to ensure food production was maintain din light of on -going global events.