To ask the Chancellor of the Exchequer if he will introduce measures to assist rural users of four wheel drive vehicles. (130368)

The Government believe that it is important that all cars registered from March 2001 are treated consistently on a carbon dioxide emissions basis under vehicle excise duty.

Vehicle excise duty for cars was reformed in 2001 and is now based on graduated CO₂ emissions bands, which give a clear signal to motorists to choose less polluting vehicles. The structure of vehicle excise duty means that vehicles in the same class or of a similar size are in different bands—for example, there are various models of four wheel drive vehicles not in bands F and G. This enables people to choose less polluting vehicles but keep the same type of vehicle.

To ask the Chancellor of the Exchequer if he will exempt Land Rovers and similar vehicles in use in rural areas which are necessary for those who work and live there from the additional excise duty mentioned in the Budget. (131318)

To ask the Chancellor of the Exchequer what assessment he has made of the effect of his Budget measures on the vehicle excise duty on drivers resident in rural areas. (130576)

Vehicle excise duty for cars was reformed in 2001 and is now based on graduated carbon dioxide emissions bands, which give a clear signal to motorists to choose less polluting vehicles.

Budget 2007 announced rates for the next three years including increases in band G in 2007-08 and for 2008-09 followed by a freeze for 2009-10, along with a reduction in the band B rate for low carbon cars in 2007-08 which will be frozen for the subsequent two years. Band G rates will apply to all cars with emissions above 225 grams CO₂ per kilometre registered from 23 March 2006 onwards.

Budget 2007 changes to vehicle excise duty apply across the UK and across manufacturers, sharpening the environmental signal to all UK motorists to purchase more fuel efficient vehicles. The sharpening of environmental signals will help deliver a 0.1-0.17 MtC reduction in CO₂ emissions by 2020.

Agricultural vehicles are exempt from payment of vehicle excise duty benefiting 283,000 vehicles in 2005.