§ Bob SpinkTo ask the Secretary of State for Transport what steps he is taking to encourage continued use of liquified petroleum gas following removal of road fuel tax support for liquid petroleum gas. [157450]
§ Mr. JamiesonLiquified petroleum gas (LPG), has and will continue to receive considerable support from Government, not only in the form of a duty incentive (worth £75 million in terms of duty forgone in 2002–03 alone), but also through grants for vehicle conversions (the Powershift scheme), and reduced rates of vehicle excise duty for gas-powered vehicles.
As the pre-Budget report made clear, the relative environmental benefits of LPG vehicles have become less significant in recent years as a result of progressively tighter emission standards for new conventional petrol and diesel vehicles As a result the Chancellor announced in the pre-Budget report that he will begin to gradually increase the rate for LPG over the next three years, setting duty differentials on a path towards a level commensurate with the fuel's environmental benefits. Consistent with the Government's commitment to give three-year certainty on duty differentials for alternative fuels, future differentials for the next three years will be announced at Budget 2004.