BUDGET '09: Biofuel billion for Government coffers
01 May 2009
Details from this year's Budget document have revealed the Government will gain more than £1 billion from last year's decision to scrap the biofuel subsidy.
In the 2008 Budget, Chancellor Alistair Darling revealed he was scrapping the 20 pence per litre subsidy for biofuels because there was a legal requirement for all fuel to contain a 5.75% mix of biofuel by 2010, known as the Renewable Transport Fuels Obligation.
However, the data tables contained in the 2009 Budget show that this move will bring the Government £525m in the 2010/11 tax year and a further £500m in the tax year 2011/12.