§ Mr. Stokes
asked the Secretary of State for Transport what is his current estimate of the evasion of vehicle excise duty.133W
§ Mr. Ridley
A report prepared by the Government Statistical Service and published today by my Department gives an estimate of some £70 million to £110 million for the annual revenue loss; 3.5 to 5 per cent. of vehicle excise duty revenue due in Great Britain in 1984–85. The best estimate of the amount of revenue that will be lost due to evasion this financial year is £90 million—just over 4 per cent.
This estimate is based on a roadside survey in June 1984. The survey identified higher than average rates of evasion in London and also indicated a particular problem relating to motor cycles. I have placed copies of the report in the Library.
I am now considering what further action is required in the light of both this report and that of the Public Accounts Committee published on 2 May.