HC Deb 07 March 1995 vol 256 c106W
Mr. Dafis

To ask the Secretary of State for Transport what assessment he has made of the effect of a rise in fuel duty of 5 per cent. per year above the rate of inflation on car use and congestion.

Mr. Norris

The strategy to raise fuel duty by a minimum of 5 per cent. per annum is an important part of the Government's climate change programme to reduce the UK's carbon dioxide emissions to 1990 levels by the year 2000.

The forecast for the growth rate of traffic up to 2000 with these increases is much the same as in the Department's current national road traffic forecasts. This reflects the fact that the real price of fuel assumed in those forecasts is similar to that now expected, as the duty increase is offset to a large degree by a lower forecast for real oil prices.

The responsiveness of road use to fuel prices is believed to be low. As well as adjusting the mileage that they drive, road users have the choice of buying smaller, more fuel-efficient vehicles, and manufacturers have an incentive to supply them.