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  • Simon Warnford-Davis

Withdrawal of the tax rebate on red diesel from 1 April for Businesses in the construction industry


The end of Red Diesel tax free status is changing in 10 weeks time on 1st April 2022 which has implications for many including the construction industry. Many businesses in the construction industry, manufacturing, as well as a number of transport and logistics users will see an increase of 45.81ppl in their fuel costs as they will be forced to switch from red diesel to DERV and pay the additional duty.


These businesses will no longer be able to use ‘red’ diesel from 1 April for most purposes. From this date, it will no longer be legal to use red diesel for non-road mobile machinery such as bulldozers and cranes or to power mobile generators on construction sites.


As well as the changeover issues and huge increases in costs this has an implication for construction (and other) sites and their security as the fuel contained on site will be far more valuable and will undoubtably attract thieves. For a firm using 100,000 litres of red diesel per year, this would equate to annual cost increases of £46,810.


Rather than loose potentially thousands of pounds in fuel and the inconvenience of potentially not being able to use vital equipment it is important that security measures are improved in construction yards and sites. Current CCTV networks should be reviewed and if necessary cabled wiring circuits extended and additional cameras added to monitor fuel tanks. If this is not possible, cost prohibitive, or flexibility is of concern, there is an alternative: wireless recordable SIM enabled battery and/or solar powered robust smart surveillance cameras. These have been used for years to monitor flood plains, fly-tipping hotspots, car dealerships, agricultural protection (assets, machinery, and livestock) and construct site protection.


iDefigo is a market leader and supplies cameras to over 50 Local Councils and Construction companies to for example protect HS2 machinery and vacant properties. The benefits are no cables and the associated costs, flexibility to move the cameras within minutes, live feed of images to a dashboard and AI technology to alert events of concern instantly through real time notifications and simple and easy footage reviewing to pinpoint PIR triggers. Powered by Vodafone these cameras can literally be sited anywhere.


To find out more please contact Idefigo today and get DERV ready


https://www.gov.uk/government/publications/reform-of-red-diesel-entitlements/reform-of-red-diesel-and-other-rebated-fuels-entitlement