§ Dr. MurrisonTo ask the Chancellor of the Exchequer what fiscal measures he proposes to encourage the use of sustainable fuels in road vehicles. [91845]
§ John HealeyThe Government's taxation plans are announced by the Chancellor of the Exchequer in his annual Budget. In making his judgment, he considers all relevant economic, social and environmental factors.
Last year, the Government introduced a reduced rate of duty for biodiesel set at 20p per litre less than the prevailing rate for ultra low sulphur diesel.
In the Pre-Budget Report, we announced a reduced rate of duty for bioethanol, to be set at 20p per litre less than the prevailing rate for ultra low sulphur petrol.
The Green Fuel Challenge has resulted in support, in the form of duty exemptions, for pilot projects promoting research into the use of hydrogen, methanol. and biogas from landfill sites as fuel for road vehicles.