The four key bodies involved in the campaign to retain red diesel for boaters are the Royal Yachting Association (RYA), the British Marine Federation (BMF), the Inland Waterways Association and the Federation of Petroleum Suppliers.

Howard Pridding, Executive Director of the BMF said: "It is great news for users and for the marine industry that the Government has decided that it is minded to apply to keep the derogation that allows private pleasure craft to use red diesel. The Government has listened carefully to all who have campaigned to keep the derogation over the last eighteen months and has realised the potential damage to participation and to the marine industry if the derogation were to lapse."

Neil Northmore, Government Relations Adviser at the RYA added: "The RYA and BMF warmly welcome the Government's statement but we are conscious that this battle is not over yet. The next step is to persuade the EU Commission to accept the UK's application to renew the derogation and that is a significant challenge. We will continue to work together with the UK Government to put forward the strongest possible case to win the argument in Europe."