Clause 20 - Calculating cylinder capacity of vehicles
Finance Bill
10:30 am
Mr Paul Boateng (Financial Secretary, HM Treasury; Brent South, Labour)
Different strokes for different folks. As usual, the right hon. Gentleman—this time, donning his anorak—has asked for detailed clarification, and I shall do my best to accommodate him.
It is important to realise that it would be inappropriate to include in a Bill the basis on which precise mathematical calculations are made. Secondary regulations normally cover matters such as the calculation of cylinder capacities for all vehicles. The clause is intended to firm up the primary legislative position in respect of such regulations, by which I mean that it corrects an anomaly. It will ensure that the Secretary of State has the right to say how cylinder capacity is calculated for all vehicles.
Rotary engines, or Wankel engines, are subject to the general rate, which I hope answers the right hon. Gentleman's specific question on that form of engine.
If the Committee takes the view that the proposed change should not be made, the power to make regulations to calculate the cylinder capacity for cars will be incomplete. The revenue might be challenged in such a way that it is threatened, unless the Committee gives the Secretary of State the powers in the clause, as I hope that it will.