§ Mr. Jim CunninghamTo ask the Secretary of State for Transport, Local Government and the Regions what steps the Government have taken to assist the introduction of electrically powered vehicles and other alternatives to the petrol fuelled motor vehicle. [25934]
§ Mr. SpellarThe Government are encouraging the introduction of cleaner vehicles, such as those powered by electricity and gas, through targeted grants and fiscal incentives.
The Energy Saving Trust's PowerShift programme, which is funded by my Department, provides grants towards the additional cost of vehicles running on electricity and gas. The programme started in 1996 and has proved very successful to date in helping to generate a significant increase in demand for alternative fuel vehicles, in particular for LPG cars. PowerShift has a total budget of £10 million for this financial year with £20 million over the next two years and is aiming to support the purchase and conversion of up to 35,000 cleaner fuel vehicles in this period.
205WFrom 1 March 2001, vehicle excise duty for new cars has been graduated on the basis of CO2 emissions. Under the new scheme, gas-powered cars benefit from a modest discount and electric vehicles are exempt from the tax altogether. In addition, there is a low rate of duty on road gas fuels—around 6p per litre, compared with 45.82p per litre on petrol and diesel.
Looking beyond existing clean vehicle options, the Government recently issued a discussion document entitled "Powering Future Vehicles" which sets out and has invited comment on the UK's draft strategy for supporting the shift to low carbon road transport. This paper sets out the UK strategy for promoting the development, introduction and take-up of fuel cell and other new technologies—and for ensuring that the UK automotive industry is fully engaged in the technology.