§ 12. Mr. G. Campbellasked the Chancellor of the Exchequer what are his estimates of the expected receipts from motor vehicles in licence duty and fuel tax at present rates for 1969 and 1970.
§ Mr. DiamondEstimates are not available for calendar years but preliminary estimated receipts for 1969–70 and 1970–71 are £460 million and £490 million, respectively, in respect of vehicle excise duty and £1,025 million and £1,075 million, respectively, in respect of fuel tax. These figures may be subject to later revision.
§ Mr. CampbellIs the Chief Secretary aware that the recent report published by the Minister of Transport on track costs shows that, with the new rates of fuel duty and licence duty, road vehicles will be paying about double the amount expended on roads in construction, maintenance and servicing?
§ Mr. DiamondThat question is an assumption which no one, I should have thought, on either side of the House accepts—namely, that a particular source of revenue is hypothecated to a particular type of expenditure.
§ Mr. Peter WalkerWill the right hon. Gentleman read the White Paper, where he will see the whole argument was that there should be a relationship between the tax on vehicles and the amount spent? Why did the Chancellor decide to increase motor vehicle licences by £33 million instead of adopting the proposal of the Minister of Transport for wear and tear and abnormal loads tax to raise the amount of £33 million?
§ Mr. DiamondI should be only too glad to read the White Paper as the hon. Member has invited me to do. [HON. MEMBERS: "Answer."]