§ Sir David SteelTo ask the Chancellor of the Exchequer what factors influenced the decision to impose vehicle excise duty on tower wagons; for what reasons vehicle excise duty was not imposed on mobile cranes732W and mobile concrete pumps; and what principle determined the different status of these items. [21126]
§ Mr. Heathcoat-AmoryA wide-ranging reform of the system of vehicle excise duty exemptions and concessions was announced in the Budget.
Tower wagons currently pay a concessionary rate of duty of £150. Under the new arrangements, they will pay full vehicle excise duty, in common with nearly all goods vehicles fitted with hydraulic platforms.
Mobile cranes, including concrete pumps, currently pay duty of £35. Those weighing 3.5 tonnes or more will, under the new arrangements, be registered in the new special vehicles class and will be subject to duty of £150. Vehicles under that weight can register as normal light goods vehicles and pay £135.
Mobile cranes use the road only between sites and their operations are restricted by their specialised construction which means that they cannot carry any load except necessary equipment. Tower wagons, on the other hand, are adapted goods vehicles which use the road more extensively than mobile cranes and are often parked on the road. Their impact on the roads and the environment is no different to that of normal goods vehicles. There has always been a significant duty differential between the two types of vehicle.