§ Mrs. LawrenceTo ask the Chancellor of the Exchequer how he proposes to treate, for excise duty purposes, the water content of diesel/water emulsion fuels. [101595]
§ Mr. TimmsBoth EU and UK law make any liquid that is added to fuel liable to duty, even water. We do not think that is fair. We shall therefore be applying to the European Commission for a derogation enabling us to propose an amendment to the law in the next Finance Bill.