Fairer tax for the minerals industry, a stop to delays or cancellation of infrastructure programmes, and retention of the red diesel rebate have been called for by the Mineral Products Association (MPA).
The MPA made the demands in its submission to the Government’s Comprehensive Spending Review.
This sets UK Government departments’ resource budgets for the years 2021/22 to 2023/24 and capital budgets for the years 2021/22 until 2024/25, and devolved administrations’ block grants for the same period.
The MPA highlighted the “disappointing” delivery of recent programmes, such as the Road Investment Strategy 1 (2015-20) in which 37 out of 112 projects were delayed or cancelled.
The industry body also outlined its opposition to the removal of the red diesel rebate, suggested how the Aggregates Levy could evolve, as well as some long-term decisions to support the industry achieve net zero.
The Chancellor of the Exchequer’s plan to remove the red diesel rebate in 2022 is a key issue facing the minerals industry.
In the absence of alternative technology, the MPA urged a delay in removing the rebate especially while the sector recovers from the pandemic.
The association estimates that the removal would cost the industry some £100 million per annum, and increase the cost of materials for housing and infrastructure projects such as HS2.
The MPA also recommended that a small proportion of revenue from the the Aggregates Levy be spent on a Community Fund focused on local projects and nature conservation.
Funds could also support the management and operation of the mineral planning system.
The MPA said that the industry was committed to achieving net zero but needed government support and a framework to encourage innovation and delivery.
“We have always called for a laser-like focus on delivery of infrastructure projects,” added chief executive Nigel Jackson.
“Increased ambition from Government is always welcome, but the important thing is to realize that ambition.
“Delivery must be as planned or even sooner, given the pressing need to strengthen the recovery.
“On red diesel there won’t be any environmental benefit from removing the rebate because there is no alternative kit – our members will simply face higher taxes at a challenging time.
“This would be a big hit to confidence, and therefore investment.”