To ask the Chancellor of the Exchequer what assessment he has made of the effect of the planned 2010 changes to vehicle excise duty affecting purchases of new models of cars on automotive sales in (a) 2010 and (b) the next five years; and if he will make a statement. (263390)

[holding answer 16 March 2009]: Pre-Budget report 2008 confirmed that differential first year rates of vehicle excise duty (VED) would be introduced in 2010, in order to provide a stronger signal of vehicle emissions at the point of sale.

As a result of these changes the Treasury expects sales of lower-emitting cars to increase and sales of higher-emitting cars to decrease. The Treasury does not hold data in relation to specific models of new cars and does not make assessments for specific models.

Vehicle excise duty reforms will continue to incentivise the purchase of lower-emitting cars in future years, helping to deliver the long-term EU target of average new cars’ emissions of 95 grams per kilometre by 2020. It is estimated that by 2020 around one million tonnes of carbon dioxide will be saved as a result of changes to VED rates and bands announced at pre-Budget report 2008.