Vehicle Excise Discs (Hansard, 19 March 1997)

Mr. Robert Ainsworth
To ask the Secretary of State for Transport what assumptions the Treasury uses when calculating the cash flow loss to the Exchequer of being paid in two instalments for six-month vehicle excise discs as against the single instalment for a 12-month disc. [20908]

§ Mr. Bowis
The cash flow loss depends on the interest and inflation rates pertaining at any time. At the current Treasury discount rate of 6 per cent., and inflation of around 2.8 per cent., the loss on the private and light goods licence would be some £3.20 if the annual duty were paid in two six-monthly instalments.

Mr. Robert Ainsworth
To ask the Secretary of State for Transport how many (i) six-month and (ii) 12-month vehicle excise discs were issued for the last year in which figures are available. [20910]

§ Mr. Bowis
The number of licences issued against VED payments in the UK in 1995–96 was:

(i) 6 month: 20,342,490

(ii) 12 month: 17,933,098.

Mr. Ainsworth
To ask the Secretary of State for Transport what was the total administrative cost of issuing vehicle excise discs for the last year in which figures are available. [20909]

§ Mr. Bowis
The issue of vehicle excise discs is an integral part of the vehicle registration and licensing system. The total administrative cost in the UK in 1995–96 was some £128 million, excluding enforcement.