§ Mr. Andrew TurnerTo ask the Chancellor of the Exchequer for what reason he decided that the rebates on vehicle excise duty for cars up to 1549cc would apply only to licences obtained after November 2000.[8513]
§ Mr. BoatengIn the November 2000 pre-Budget report, the Chancellor proposed that he would extend the small car engine VED rate for cars first registered before 1 March 2001 from 1200cc to 1500cc, subject to consultation. The Chancellor also proposed that this extension should have immediate effect, as if starting in November 2000.
In Budget 2001, the Chancellor confirmed that following consultation, the Government would extend the small car engine VED rate from 1200cc to 1549cc. To deliver the commitment to ensure that the extension applied from November 2000, all motorists who took out vehicle licences between November 2000 and June 2001 inclusive have been invited to apply for rebates. Any new licences taken out from 1 July 2001 are charged at the new, lower rate.