HC Deb 24 June 2004 vol 422 c1531W
Paul Holmes

To ask the Secretary of State for Transport how many cars receive road tax exemption through the Motability scheme; how much this exemption costs; what the financial value is of the exemption; how many of the exempted cars are registered to people aged 65 years and over; what plans he has to extend the exemptions to adapted cars bought by people disabled after their 65 birthday; and if he will estimate the cost of extending the exemptions. [178459]

Mr. Jamieson

This exemption cost the Exchequer an estimated £155 million in 2002–2003. It can be worth anything between £15 and £2,585 per annum depending on the type of vehicle concerned.

There are currently around 375,000 vehicles in the Motability fleet (either contract hire or hire purchase). About 26 per cent. of these are in the 65+ age group.

There are no plans to change the way the exemption works at present. However, the Chancellor keeps all taxation policy under review and any changes are announced in the context of his Budget statement after considering relevant economic, social and environmental factors.