To ask the Chancellor of the Exchequer how many (a) petrol cars and (b) diesel cars there were in each vehicle excise duty band for private vehicles in each of the last four years for which figures are available; and if he will make a statement. (79310)

I have been asked to reply.

The two tables indicate the number of petrol and diesel cars registered in each vehicle excise duty (VED) band for the years 2002 to 2005.

Table 1 outlines the number of cars whose keepers pay graduated VED. Graduated VED was brought into effect in March 2001. Cars attract a rate of VED dependant upon their CO₂ emissions per kilometre driven. There have been a number of changes to the banding system since it was introduced. These are outlined in table 1.

Combined with the new vehicle CO₂ labelling scheme and company car tax, graduated VED raises awareness of CO₂ and provides incentives for consumers to purchase more fuel efficient vehicles.

Table 2 outlines the number of cars whose keepers pay VED by the old system. Cars that were purchased before March 2001 attract VED according to their engine size. A car with an engine capacity above 1549cc pays the higher rate. Those with engines under 1550cc pay the lower rate.

To ask the Chancellor of the Exchequer why there are different levels of vehicle excise duty for diesel cars and petrol cars; and if he will make a statement. (79311)

As announced in Budget 2000, from 1 March 2001 a graduated VED system for new cars was introduced. Under this system, all new cars first registered from that date have the rate of VED payable determined according to their rate of carbon dioxide emissions.

Within each band, there is a £10 discount for cars using cleaner fuels and technology, including those powered by road fuel gas, bi-fuel and dual fuel, and cars using hybrid technology. Within each band, there is also a supplement for diesel cars to reflect their higher emissions of particulates and other pollutants which damage local air quality.