Vehicle Excise Duty

HC Deb 21 June 1999 vol 333 cc310-1W

Mrs. Betty Williams

To ask the Chancellor of the Exchequer what plans he has to extend the availability of reduced rates of vehicle excise duty for vehicles with(a) small engine capacity and (b) fuel efficient engines. [87038]

Ms Hewitt

[holding answer 15 June 1999]My right hon. Friend the Chancellor of the Exchequer detailed current vehicle excise duty policy in his March Budget Statement, 9 March 1999,Official Report, columns 173–90. He announced that from June 1 vehicles of 1100cc. or less would pay a reduced rate of vehicle excise duty of £100. Around 1.8 million cars will have qualified for the£55 reduction in their vehicle excise duty from the start of this month.

The Chancellor also announced that a system of graduated vehicle excise duty for new cars would be introduced in Autumn 2000. This will be based primarily on their carbon dioxide emissions, which are the most accurate indicator of fuel efficiency.