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21 July 2008 : Column 722W—continued



21 July 2008 : Column 723W

21 July 2008 : Column 724W
2010-11
Band CO 2 (g/km) 2010-11 Percentage pay less Percentage pay the same Percentage pay more

A

Up to 100

9,000

0

100

0

B

101-110

266,000

100

0

0

C

111-120

565,000

20

80

0

D

121-130

822,000

100

0

0

E

131-140

2,813,000

100

0

0

F

141-150

3,393,000

0

100

0

G

151-160

3,560,000

0

100

0

H

161-170

2,558,000

0

40

60

I

171-180

1,912,000

0

0

100

J

181-200

2,714,000

0

0

100

K

201-225

1,535,000

0

0

100

L

226-255

1,002,000

0

0

100

M

Over 255

766,000

0

0

100

All bands

21,915,000

18

39

43


The graduated VED rate will apply to all cars for which emissions data are available, i.e. those first registered after March 2001. For cars purchased pre-March 2001, different rates apply.

There are also separate arrangements in place for alternative fuel cars which are defined as ‘gas-propelled vehicles, and those capable of being propelled by petrol and gas or electricity and petrol/diesel’.

These cars will receive a discount on their graduated VED. In 2008-09, alterative fuel cars in bands A to E receive a £20 discount from the standard graduated VED rate, and cars in bands F and G receive a £15 discount. In 2009-10, the discount for cars in new bands A to I will be £20, and £15 for cars in bands J to M. In 2010-11, all alternative fuel cars will receive a £10 discount from the standard rate.

As has been the practice under successive Governments, the VED rates will apply to all cars, including second-hand ones, where emissions data are available. Since the number of used cars sold is three times that of new cars, it is important to provide an environmental incentive to the used car market as well as the new car market.

The new rates will include a transitional period for cars registered between March 2001 and March 2006 that emit 225g/km or higher. These cars have been charged at a lower rate since 2006. They are currently charged the rate for current band F (£210), when the correct band for their emissions is band G (£400).

In order to reduce the financial impact on these motorists in any one year, these vehicles will be charged a lower transitional rate of £300 in 2009, before moving into band L or M in 2010—bringing them in line with all other vehicles with the same emission levels. This group represents the 5 per cent. of motorists in graduated VED who will pay between £100 and £245 extra in non first year rates from 2010.

The graduated VED rates do not apply to cars purchased before March 2001, as there are no comprehensive emissions data available for these vehicles. Motorists who bought their cars before March 2001 will continue to pay VED based on the size of the engine. Cars with engines below 1549 cc will have their VED rate frozen at £120 in 2009—a fall in real terms—while cars with engines above 1550 cc will see their VED rate increase by £15. Having different rates depending on the engine size ensures that there is an environmental signal for VED taxation for pre-2001 cars, taking account of the data available.

The following table is based on the categories for pre- March 2001 cars published on page 123 of the Budget Red Book and sets out the current Treasury estimate of the number of cars that will sit within each category.

Estimated number of pre-2001 cars by band
2007-08 2008-09 2009-10 2010-11

1549cc and below

4,198,000

3,771,000

3,322,000

2,851,000

1550 cc and above

7,091,000

6,403,000

5,687,000

4,934,000


In 1997 the rate of VED was £145. Had the Government simply uprated the duty in line with inflation then all motorists would have to pay £200 in 2009. Therefore, all cars purchased prior to 2001 will pay no more in real terms in 2009 than in 1997. The single VED band meant that all car owners were taxed the same amount, regardless of the type of car that they drive. By introducing and then reforming graduated VED since 2001, the Government have made the system less regressive, as well as ensuring that the most polluting cars pay more than the least polluting.

Statistics for the number of the vehicles in low-income households are not available for 2007-08, and has not been forecast for 2008-09 onwards. The Government do not collect data from drivers when purchasing tax discs according to their household income. The best available relevant data on the impact of VED on low income households are set out in my PQ answer of 4 June.

The Treasury does not hold information on the specific impact of proposed vehicle excise duties on rural areas. Working vehicles that do not use public roads other than for travelling no more than 1.5 kilometres between different areas of land owned by the same person are exempt from VED.

Financial Services Authority: Northern Ireland

Mr. Donaldson: To ask the Chancellor of the Exchequer if he will establish an office of the Financial Services Authority in Northern Ireland. [220748]

Kitty Ussher: The Financial Services Authority conducts a range of events to ensure effective communication with firms based in Northern Ireland. These are an operational matter for the FSA, which is independent of Government.

Fish

Mr. Peter Ainsworth: To ask the Chancellor of the Exchequer how much fish was procured by his Department and at what cost in each of the last five years, broken down by species; and what amount and value of such fish met the Marine Stewardship Council standard in each such year, broken down by species. [217896]


21 July 2008 : Column 725W

Angela Eagle: The information requested can be provided only at disproportionate cost by the PFI provider of catering services to the Treasury.

Fruit: Scotland

Pete Wishart: To ask the Chancellor of the Exchequer what estimate he has made of the amount the Exchequer received from the Scottish fruit industry in each of the last five years. [218429]

Angela Eagle: No such estimate has been made by the Treasury.

Fuels: Prices

Dr. Kumar: To ask the Chancellor of the Exchequer what assessment he has made of the relationship between speculation on futures markets and prices of crude oil and gas. [219851]

Angela Eagle: The Government published their latest assessment of the relationship between speculation on futures markets and commodity prices, including crude oil and gas, in “Global Commodities: a long-term vision for stable, secure and sustainable global markets” on 12 June 2008.

Insurance: Unfair Practices

Harry Cohen: To ask the Chancellor of the Exchequer what steps his Department proposes to take on overcharging in relation to payment protection insurance policies as reported by the Competition Commission. [220868]

Kitty Ussher: The Competition Commission's report of 5 June 2008 on payment protection insurance is a provisional findings report. Her Majesty's Treasury will maintain a close dialogue with industry and the independent Financial Ombudsman Service, Financial Services Authority, Competition Commission, and the Office of Fair Trading.

Members: Correspondence

Mr. Winnick: To ask the Chancellor of the Exchequer when the hon. Member for Walsall, North will receive a reply to his letter of 12 May regarding a constituent, reference 96705. [220321]

Angela Eagle: I understand the correspondence referred to, initially sent to the Foreign and Commonwealth Office, is being dealt with by DCMS.

Minimum Wage: Hampshire

Sandra Gidley: To ask the Chancellor of the Exchequer how many people aged (a) under 18, (b) under 21 and (c) over 60 years were found to be paid below the minimum wage in (i) Hampshire and (ii) Southampton in each of the last five years. [218621]

Jane Kennedy: The information requested is not available.


21 July 2008 : Column 726W

Minimum Wage: Tamworth

Mr. Jenkins: To ask the Chancellor of the Exchequer how many companies in Tamworth have been (a) fined and (b) required to cease trading for non-compliance with national minimum wage provisions since 2005. [220127]

Jane Kennedy: HMRC does not maintain statistical information at constituency level.

Mortgages: Repossession Orders

Adam Price: To ask the Chancellor of the Exchequer how many homes have been repossessed by Northern Rock since nationalisation. [220078]

Kitty Ussher: During this period of temporary public ownership, Northern Rock is managed by its board at arm's length from the Government on commercial principles. It is a matter for the company's management to release specific business updates or provide any required disclosures in their audited annual report and accounts.

Non-Domestic Rates: Tax Allowances

Sarah Teather: To ask the Chancellor of the Exchequer how many applications for exemption from business rates have been submitted to the Valuation Office Agency in each of the last five years. [220801]

Jane Kennedy: The numbers of proposals received by the Valuation Office Agency over the last five years, seeking removal from the non-domestic lists, including those where it is claimed the property is now wholly domestic is:

England and Wales

2003-04

1,397

2004-05

1,338

2005-06

931

2006-07

654

2007-08

731

Total

5,051


Northern Rock

Jim Cousins: To ask the Chancellor of the Exchequer whether (a) he and (b) another of the tripartite authorities has conducted an inquiry into the leak of the offer of emergency assistance to Northern Rock on 13 September 2007. [217624]

Kitty Ussher: As the Chancellor told the Treasury Committee on 25 October 2007, the Treasury did not conduct a leak inquiry. Nor have the Bank of England or the Financial Services Authority.


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