To ask the Chancellor of the Exchequer what assessment has been made of the merits of hypothecating vehicle excise duty revenue for funding policies to address climate change and other forms of environmental damage. (132952)

The Government’s spending priorities are not in general determined by the way in which the money is raised. Revenue from the taxation of vehicles contributes—with other taxes and income—to the overall amount available to Government to spend, including on our transport and environmental protection priorities.

The Government’s principled approach to the use of taxation as an instrument of environmental policy is set out in paragraphs 7.3-7.5 of the Chancellor’s 2007 Budget report.