David Savage quoted in Building Magazine on construction red diesel usage

Red diesel will no longer be allowed in construction plant and machinery. What does this change mean for the industry?

The Building article explains the use of red diesel, who uses it, and asks what will the short-term impact be on construction?

According to the government, red diesel accounts for 15% of all the diesel used in the UK and is responsible for the production of 14 million tonnes of carbon dioxide a year. Ministers hope the change will incentivise firms to invest in greener alternatives, such as hydrotreated vegetable oil (HVO), improve the energy efficiency of their machinery or use less fuel.

David Savage, construction partner at Charles Russell Speechlys, said the changes will “accelerate construction price escalation” and this will be borne by clients.

Continuing to say specialist contractors with significant plant and equipment fuel costs, such as earth-moving and groundworks contractors, will be hit particularly hard.

David finishes by saying: “For these specialist subcontractors, their overall costs of operation could easily rise by 5%-6% overall as a result of this reform.”

David’s quote first appeared in Building Magazine.