§ Mr. HunterTo ask the Chancellor of the Exchequer what is his assessment of the implications of the Budget statement for the United Kingdom motor car industry.
§ Mr. DorrellThe Budget will benefit industry, including the motor industry, by ensuring that the recovery is sustainable. The motor industry is already playing an important part in the recovery and has benefited significantly from the abolition of car tax. Yesterday's Budget completed the switch in taxation from car purchase to car use which the Chancellor announced in his autumn statement.
Yesterday's Budget also included two proposals of particular importance to the motor industry: a clear indication of the Government's intentions on fuel taxation and a new structure for the taxation of company cars from April 1994. Both changes will provide the industry with a stable background against which to plan future investment.