To ask the Chancellor of the Exchequer what assessment he has made of the impact of the graduated rates of tax for vehicle excise duty introduced in 2001 on ownership of cars in the different tax bands. (129739)

The Government inherited a one band system of VED in 1997, but now has environmentally graduated carbon dioxide bands. VED’s environmental signal to motorists to purchase more fuel efficient cars and to vehicle manufacturers has been progressively refined and sharpened.

This is one of the reasons why the proportion of least polluting cars on our roads has risen by 30 per cent. while that of the most polluting cars has fallen.

The numbers of vehicles in the three lowest carbon dioxide emissions VED bands is forecast to grow significantly in the longer term in part due to VED reform.

To ask the Chancellor of the Exchequer (1) whether he has taken steps to encourage cars with large engines that might incur the highest rate of vehicle excise duty to be converted to liquified petroleum gas or other cleaner fuels; (130038)

When CO₂ emissions graduated vehicle excise duty was introduced in 2001 the CO₂ banding structure included a discount for cars capable of using alternative fuels. This discount remains in place and is worth £20 for cars in bands B-E, and £15 for cars in bands F and G. Cars capable of running on liquefied petroleum gas, compressed natural gas and E85 high blend bioethanol are eligible to receive this.

A fuel duty differential has been in place for bioethanol since 2005 and Budget 2007 announced the extension of the 20 pence per litre biofuels duty incentive until 2009-10, offering further certainty to the industry and motorists. As acknowledged in the Chancellor's 2007 Budget report road fuel gases such as compressed natural gas and liquefied petroleum gas can deliver carbon and air quality benefits over conventional road fuels. Duty support is given to these fuels in line with the principles in the Government's alternative fuels framework.

Liquefied petroleum gas currently benefits from a fuel duty incentive over main road fuels which equates to 39.79 pence per litre.

To ask the Chancellor of the Exchequer what his policy is on the exemption of motorists with disabilities from vehicle excise duty; what account is taken of the age of such motorists in eligibility for such exemptions; and if he will make a statement. (130328)

Exemption from vehicle excise duty for cars is offered to severely disabled people who are in receipt of war pensioners mobility supplement (WPMS) or the higher rate mobility component of Disability Living Allowance (DLA).

The recipient can nominate someone else to drive the car, and the car may be registered either to the recipient or the nominee. However, for the car to remain exempt all journeys must be for the recipient's purposes—for example for taking the recipient to the doctor or for doing the recipient's shopping—otherwise the appropriate rate of Vehicle excise duty must be paid. Vehicle excise duty must be paid on any additional vehicles—the exemption can only be claimed once.

The Government believe that using WPMS and the higher rate mobility component of DLA is the most effective way of delivering this exemption to the people most in need. DLA is only available to people claiming before the age of 65, but once granted can continue in payments beyond the age of 65 so long as the conditions of entitlement remain satisfied.