HC Deb 17 June 2004 vol 422 cc1034-5W
23. Mr. Chaytor

To ask the Chancellor of the Exchequer what plans he has to use the tax system to improve the fuel efficiency of vehicles. [179145]

John Healey

The Chancellor considers all relevant environmental, economic and social factors in deciding taxation policy. He will announce any changes to taxation policy in the context of his Budget statement.

The Government already has a good record in using taxation to improve fuel efficiency through, for example, duty differentials in favour of cleaner fuels and graduated vehicle excise duty and the reform of company car taxation which provide incentives for more fuel efficient cars.