An increase in road tax for essential rural vehicles and a further hike in fuel duties will heavily penalise farmers and others living and working in rural Scotland, according to NFU Scotland President Jim McLaren. 

Reacting to the Budget announced today by the Chancellor, NFUS has stressed that 4x4 vehicles are essential for farmers and a doubling of Vehicle Excise Duty, on top of a further two pence increase in fuel duty, is an unacceptably heavy penalty for individuals with no practical alternatives.  On top of this, red diesel duty for off-road, agricultural vehicles will also increase by two pence per litre from 1 October, significantly above inflation.

On a more positive side, the extension of the duty rebate on biofuel to 2010 is a welcome step as the UK seeks to develop its green fuel industry.

NFUS President Jim McLaren said:

“Farmers don’t drive 4x4s as a lifestyle choice, they are essential tools for the job.  The Chancellor is clearly trying to penalise those driving big cars in city centres, yet by doubling road tax for all these vehicles he is hitting individuals that have no alternatives.  Having stressed that point to the Chancellor in my recent letter to him, I am hugely disappointed that he has not sought to exempt essential users.

“The increase in fuel duty of two pence per litre from 1 October exacerbates the double-whammy of woeful public transport and higher fuel prices already facing rural areas.

“The Chancellor has announced he will maintain the differential between red diesel and normal road diesel, but this means a rise in red diesel duty of 2ppl as well.  The rise is way above inflation and just adds to the dismal fuel news delivered by the Chancellor to rural areas.

“There is one bright spot though, which is an extension of the biofuel duty rebate until 2010, something we have called for.  This is a good move, which supports the Renewable Fuel Transport Obligation, which should see biofuels represent 5% of all road fuels by 2010 and 10% by 2020.  This is an opportunity for farmers to be a major part of the solution to climate change by growing energy crops and turning waste into green road fuel.”

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