§ 18. Mr. ChaytorTo ask the Chancellor of the Exchequer what incentives he has introduced for motorists to convert their vehicles to run on low emission fuels; and if he will make a statement. [141852]
§ Mr. TimmsThe cleaner vehicles programme offers grants of up to 75 per cent. of the cost of converting vehicles to natural gas, liquefied petroleum gas and electricity. Its funding has been almost tripled for this year, to £10 million. We have introduced a sharply reduced rate of duty on liquid petroleum gas, and the new graduated VED system for new cars being introduced in March will offer new reductions for cars using low emission fuels.
In the pre-Budget report, the Chancellor set a challenge to British industry to develop proposals for practical alternative fuels. Our intention is to be in a position to announce significant duty reductions for the most promising alternative fuels at the time of the Budget.