UK government eliminates ethanol subsidy to save $1.1 billion

In England, the national government eliminated more than $1.1 billion in ethanol subsidies, which observers agree will kill E85 in Britain. The subsidy cut was contained in the Treasury’s Red Book, which accompanies the Budget speech, but was not mentioned in the speech itself. British Chancellor of the Exchequer Alistair Darling had said that the government had delivered a “budget for the environment”. The subsidy would be replaced by steep fines for companies that fail to meet their blending obligations under the Renewable Transport Fuel Obligation.

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