Clause 20 - Calculating cylinder capacity of vehicles
Finance Bill
10:30 am
Mr Paul Boateng (Financial Secretary, HM Treasury; Brent South, Labour)
I do not think that the hon. Gentleman is alone in his response to the clause. Let me explain the thinking behind it. It was important that the Secretary of State should have the powers to calculate the cylinder capacity of all vehicle engines recognised in statute. Prior to 1999, cars and light vans paid a flat rate of vehicle excise duty. In June of that year, a reduced rate was introduced for certain vehicles based on their cylinder capacity. The relevant regulations defining how such capacity should be calculated was apparently only extended to motorcycles.
There was not, therefore, a recognition in statute that the Secretary of State should fulfil such a role in relation to all vehicle engines. The provision corrects the position and grants the Secretary of State powers to calculate the cylinder capacity of all vehicles. We will all be reassured that the Secretary of State acts within powers in making what are, as the hon. Gentleman says, rather obvious calculations.