Written Question·Treasury·UIN 83567

Motor Sports: Alternative Fuels

Tabled: 20 October 2025
Answered: 28 October 2025

Question

Mr Will Forster

Liberal DemocratWoking

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of removing the tax on sustainable fuel on the UK's motorsport sector.

Answer

Dan Tomlinson
Liquid biofuels and renewable fuels are taxed at the same rate as their petrol and diesel equivalents. The main rate is 52.95 pence per litre. The government keeps the tax system under review, with changes announced at fiscal events.