§ Mr. LlwydTo ask the Chancellor of the Exchequer what evaluation he has made of the likely impact of the increase of duty on diesel fuel in his Budget statement on(a) the prices of bus transport to consumers and (b) the frequency of local bus services. [5305]
§ Mr. Heathcoat-AmoryBus operators are able to claim a rebate on the majority of their diesel duty payments. Depending on the price paid for diesel the actual duty element is likely to represent less than 20 per cent. of the total VAT-exclusive price. Prior to the Budget net duty payments represented around 3 per cent. of total costs for bus operators: this will rise to around 3.5 to 4 per cent. post-Budget. The effect of these cost increases on fares and frequency of bus services will depend on the decisions of individual operators.