Budget Hit for the Road Marking Industry

11 March 2020

The Road Safety Markings Association (RSMA) has expressed its disappointment at the Budget delivered today by Chancellor Rishi Sunak. Abolishing the subsidy on red diesel in 2 years’ time will have serious and significant consequences for the road marking industry as red diesel is used in pre-heaters prior to road marking materials being applied. The RSMA shall engage with Government during the consultation period announced for this summer and shall seek the amendment or withdrawal of the planned increase.

Stu McInroy, RSMA Chief Executive, said: “The Budget is hugely disappointing to RSMA members all of whom work to small margins that are now to be squeezed even further with a 430% increase in the cost of red diesel.

“It is impossible to view this as anything more than a cash generator for HM Treasury, rather than the green initiative it has been portrayed to be.

“Road marking contractors install road-safety critical infrastructure without which, road users lose vital guidance. Although only a small element within the highways industry, road marking is of critical importance, and this ill-advised policy decision will likely result in the closure of some businesses.”

RSMA Chairman, Stephen Scott, added: “The road marking industry uses red diesel as a fuel source to heat materials prior to them being laid on the roads. The industry moved to red diesel as an energy source due to the risk to road workers and road users of using propane gas. Safety is our number one priority and this decision will again increase the cost to businesses of providing a secure, safe and low risk environment for their employees.”

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