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Excise Duties: Motor Vehicles

Volume 475: debated on Wednesday 14 May 2008

To ask the Chancellor of the Exchequer what factors were taken into account in making the decision to remove the exemption from higher rates of vehicle excise duty from vehicles first registered after March 2001; what consultation he undertook before removing the exemption; and if he will make a statement. (205019)

Budget 2008 announced reform of the Vehicle Excise Duty structure with new rate bands from 2009 and a new higher first-year rate from 2010 to influence purchasing choices. The Government's policy on exemptions from Vehicle Excise Duty has remained unchanged and existing nil rates will remain in force.

The Government take rates decisions as part of the routine Budget process. Budget 2008 decisions will therefore introduce rates from 2009-10 which are appropriate and apply consistently to all cars across the emissions spectrum—the more polluting the vehicle, the more vehicle excise duty it will pay. In taking such rates decisions the Government considers a range of factors, including relevant environmental, social and economic factors.

To ask the Chancellor of the Exchequer (1) which (a) cars and (b) vans will be subject to an increase in vehicle excise duty in the 2009-10 financial year, broken down by (i) make and model of vehicle and (ii) size of engine; and if he will make a statement; (205303)

(2) what recent discussions he has had with the Secretary of State for Transport on the proposed increase in excise duty on certain vehicles in the next financial year; and if he will make a statement.

The information requested on each individual variant of each model of car or van could be provided only at disproportionate cost. Individual vehicle owners may determine the rate applicable to their vehicle in 2009-10 by reference to the vehicle's registration document and table A8a of the Budget report. In addition, cars that emit more than 225 g CO2 per km but were first registered before 23 March 2006 will be placed in Band K in 2009-10—and will continue to benefit from a reduced rate, and only in 2010-11 will these cars be placed into the band (L or M) that corresponds to the car's actual CO2 emissions.

Treasury Ministers engage with their ministerial colleagues in shared policy areas as a matter of routine as part of the process of policy development and delivery.