Liquefied Petroleum Gas

HC Deb 30 June 2003 vol 408 cc51-2W

Bob Spink

To ask the Chancellor of the Exchequer if he will make it his policy to establish medium term stability on the taxation of liquefied petroleum gas. [122350]

John Healey

In Budget 2001, the Chancellor gave a commitment that the duty on liquefied petroleum gas would not be increased in real terms until 2004 at the earliest. The Chancellor announced in Budget 2003 that the Government would consult key stakeholders on how best to ensure that support for road fuel gases beyond 2004 would continue to reflect environmental and other policy objectives. This consultation was launched earlier this month and will seek stakeholders' views on the effectiveness of range of potential incentives, including fuel duties and the grants for LPG vehicles currently offered through the TransportEnergy PowerShift programme.

The consultation is being carried out jointly by the Department for Transport, HM Treasury and HM Customs and Excise and will conclude in September. We plan to announce our conclusions at this year's Pre-Budget Report.