§ Mr. WigleyTo ask the Chancellor of the Exchequer if he will make a statement on his taxation policy in respect of the development of non-polluting methods of powering motor cars. [132791]
§ Mr. TimmsDuty on road fuel gases was cut by 29 per cent. in 1999 and was frozen in the March Budget.
The duty differential between ultra low sulphur diesel and conventional diesel had succeeded in turning the UK market over to the more environmentally friendly low sulphur fuel. Furthermore, as announced in March 2000 a 1p/litre inventive will be introduced for ultra low sulphur petrol.
The graduated system of Vehicle Excise Duty for new cars, being introduced in March 2001, will offer discounted rates for cars using more environmentally friendly fuels.