§ Mr. Timms
[holding answer 16 November 2000]: The Government have received representations on tax on fuel from a large number of organisations and individuals, including farmers and horticulturists. Farmers are entitled to use 'red diesel' for off road use, with a duty rate of just over 3p/litre. The Government have announced that this rate will be frozen in Budget 2001 in cash terms.
The Government announced in the pre-Budget report that they intend to abolish vehicle excise duties on tractors. Also, in recognition of the unique position of the UK horticulture sector, the Government announced in the March Budget that they intend to offer a special package of support under the climate change levy.