Lib Dems call for end of tax loophole for diesel refrigeration engines on London’s roads

On National Clean Air Day a joint submission from Caroline Pidgeon, Liberal Democrat Londonwide Assembly Member and recently elected Liberal Democrat London MPs Tom Brake, Vince Cable and Ed Davey, called for the Treasury to immediately end the tax loophole that exists for diesel used in auxiliary engines, such as refrigeration engines on supermarket lorries.

Explaining why the closure of the tax loophole is so important Caroline Pidgeon said:

“Red diesel was never intended to support major corporations operating on London’s roads.

“We need to end this loophole as quickly as possible. By hardly taxing diesel used for refrigeration units we provide a perverse incentive for supermarkets and other companies to carry on using diesel, when instead they should be adopting alternative cleaner technologies.”

Tom Brake, MP for Carshalton and Wallington said:

“My local company Dearman have powerfully demonstrated that there are alternatives to diesel refrigeration units on supermarket lorries. We need to support the adoption of new and cleaner technology. The current tax arrangements do the exact opposite and actually encourage the use of dirty diesel refrigeration engines continuing to exist on supermarket lorries.”

Sir Ed Davey, MP for Kingston and Surbiton, and former Secretary of State for Energy and Climate Change said:

“Last year the world was scandalised by the revelation that VW and other manufacturers had installed ‘defeat devices’ on diesel cars to cheat US emission standards.  However transport refrigeration units are far worse – emitting up to 93 times more NOx and 165 times more PM than the standards for a Euro 6 diesel car.”

“The case for this tax change is overwhelming.”

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