BIGGA responds to red diesel subsidy announcement

 

The 2020 Budget was delivered by the Chancellor, Rishi Sunak, on 11 March and detailed proposals that have the potential to financially impact golf facilities.

Key among them was the announcement that from April 2022, golf courses may no longer be able to benefit from a substantial subsidy on red diesel to power mowers and other machinery. Some industries were exempt from this measure – agriculture, fisheries, rail and non-commercial heating – but there was no mention of horticulture, amenity or turf.

Red diesel is the same as regular diesel, but it is taxed lower, making it a cheaper alternative for businesses. The only difference is a red dye that is added to prevent it being used by road-going vehicles. Red diesel is taxed at 11.14p a litre, compared to 57.95p a litre for standard diesel and as such, there are significant savings to be made with regards its use on the golf course. These savings are generally between £5,000 and £10,000 per golf course per year.

The Chancellor stated that affected industries will have the opportunity to state their case for exemption. BIGGA has already begun conversations with the governing bodies and associations in golf in order that the sport can present a strong case to government at the appropriate time.  

While we support the moves to clamp down on carbon emissions, there is currently little alternative to diesel usage for the majority of golf clubs.