Charity tractor runs will be able to continue to use red diesel following industry pressure on HMRC to backtrack on a controversial legislation change.
The Treasury has made an amendment to rebated fuels guidance, which will ensure people participating in tractor runs will be able to use red diesel.
The legislation change, which would have been rolled out from Friday (1 April), would have forbid the use of red diesel in vehicles for events such as tractor runs and ploughing matches.
In his 2020 Budget speech, Chancellor Rishi Sunak said the government would abolish the red diesel exemption for most sectors as it 'funds pollution'.
However, he announced that it would be retained solely for agriculture, a strict definition which excluded ploughing matches or charity tractor runs.
The announcement was part of wider measures to ensure the UK reaches its net zero ambitions by 2050.
But organisers of tractor runs and ploughing matches had raised fears for the continued existence of their events due to the move.
Earlier this month, HMRC backtracked on changes to red diesel usage rules, which allowed continued use for ploughing matches and agricultural shows, but tractor runs were notably left out.
Now guidance has again been amended, meaning tractor runs can continue to use the fuel as it is an activity "relating to agriculture."
It states that activities falling within the definition of agriculture includes "running or participating in events which provide information and education that benefit agriculture, including taking part in charitable activities that promote these industries."
Responding, the Ulster Farmers' Union (UFU) said the announcement would be 'well received' by the farming community.
"This will be well received by our members and rural communities that host tractor runs and many other agri events to raise vital funds for charities," UFU deputy president David Brown said.
"It’s good that common sense has prevailed and our rural communities can continue to raise essential funds through tractor runs and other agri events.”
