§ Mr. Jim Cunningham
To ask the Secretary of State for Transport how his Department is working with the Treasury to provide greater purchase incentives for smaller, cleaner vehicles. 1242W
§ Mr. Jamieson
The Government provides a number of incentives to encourage the purchase and use of clean, low carbon vehicles. The Vehicle Excise Duty regime, for example, is structured so that those who choose the cleanest, most fuel efficient vehicles can save themselves up to £110 a year (or up to £165 if they choose a fully electric car). The new company car tax system introduced in April 2002 provides very large incentives to encourage the purchase of clean, fuel-efficient cars. Early evidence suggests that it has already had a significant impact in the company car market. And, under the Government's Power Shift programme, which is administered by the Energy Saving Trust, purchase grants are available to incentivise the market for clean, low carbon vehicles and technologies. Officials in my Department work closely with their colleagues in the Treasury and Inland Revenue on these and other transport taxation issues.