The single biggest financial incentive for most drivers is provided by fuel duty. Motorists can make substantial fuel duty savings by choosing more efficient, less polluting vehicles.
In 2001 vehicle excise duty for cars was reformed and is now graduated by carbon dioxide emissions. This gives a clear signal to motorists to choose less polluting vehicles. In Budget 2006 this framework was further reformed to strengthen environmental signals. Private and light goods vehicles first registered before March 2001 are taxed according to their engine size, in one of two bands.
Company car tax is also graduated according to CO2 emissions, having been reformed in 2002.
The CO2 ratings for new cars are published on the website of the Vehicle Certification Agency and in its publication “New Car Fuel Consumption and Emission Figures” (latest edition May 2006) and VED rates are published on the DVLA website.
Concerning grants, I refer the hon. Member to the written statement “Transport grant and advice programmes” which I made on 7 June 2006, Official Report, columns 30-32WS.