§ Bob SpinkTo ask the Chancellor of the Exchequer (1) what the grounds were for changing his policy on the level of support for liquefied petroleum gas; and if he will make a statement; [157165]
(2) what taxation policies he plans to bridge the time gap between the current subsidy of green road fuels and future development of compressed natural gas and hydrogen; [157166]
(3) what policies he is considering to address fuel poverty (a) in remote and rural areas and (b) for disabled drivers who use liquefied petroleum gas; [157167]
(4) if he will make it his policy to compensate people who have converted their vehicles to run on liquefied petroleum gas for the removal of taxation support for liquefied petroleum gas. [157451]
§ John HealeyIn the last pre-Budget report (Cm6042) the Chancellor of the Exchequer announced an Alternative Fuels Framework, which sets out the rationale for Government support for alternative fuels, and places environmental benefits at its core. In recognition of the importance to investors of providing 711W long-term certainty in the market, the framework includes an unprecedented commitment to a three-year rolling guarantee on the fuel duty differentials for all alternative fuels.
The UK offers the biggest duty incentive for road fuel gases, including liquefied petroleum gas, in Europe. This incentive cost the Exchequer £75 million in duty forgone in 2002–03 alone. The Government also give valuable support to this sector through grants for vehicle conversions (the Powershift scheme), reduced rates of vehicle excise duty for gas powered vehicles, and company car tax reliefs.
Fuel duty rates are being considered as part of the Budget process, taking account of all relevant economic, social and environmental factors including the likely impacts on different population groups.