§ Mr. Gordon PrenticeTo ask the Chancellor of the Exchequer what assessment he has made of the impact of divergence in diesel duty rates across the EU on United Kingdom competitiveness. [46576]
§ Dawn PrimaroloDiesel duty rates in other Member States are one of many factors assessed in determining the level of UK rates. This assessment has resulted, in the last Budget, in a package of measures which reflects the Government's commitment to the environment and to promoting a more dynamic business sector.
The Government are committed to achieving their share of the EU target, to reduce greenhouse gas emissions by 8 per cent. by 2008–2012. The commitment to increase road fuel rates by at least 6 per cent. on average in real terms each year reflects this. In addition, the Government intend, over time, to adjust the structure of duties on road 453W fuels to move towards a fairer treatment of unleaded petrol and diesel, when calculated on an energy or carbon basis, and to encourage diesel users to switch to cleaner ultra-low sulphur diesel.