Clause 13
Finance Bill
9:45 am
Nicholas Winterton (Macclesfield, Conservative)
With this it will be convenient to discuss new clause 4—Fuel duty regulator—
‘In the HODA 1979 (c. 5) in section 6 (excise duty on hydrocarbon oil) there is inserted after subsection (1A)—
“(1AA) In every Budget Statement and pre-Budget Report the Chancellor of the Exchequer shall provide his forecast for the price of oil and set out anticipated yield from fuel duty and VAT on fuel for that price and for a range of prices up to 50 per cent. above his forecast.
(1AB) In the 2008 pre-Budget Report the Chancellor of the Exchequer shall bring forward a mechanism for—
(a) using additional revenue from VAT on fuel above forecast to offset fuel duty when the oil price rises above his forecast level;
(b) providing specific fuel duty reductions targeted at fuel sold in sparsely populated areas; and
(c) providing specific fuel duty reductions targeted at fuel sold to road haulage operators;
and the Chancellor of the Exchequer shall by order define “sparsely populated areas” and “road haulage operators” for the purposes of this subsection.
(1AC) Whenever international oil prices return to the level estimated by the forecast made in accordance with subsection (1AA), the offset described in subsection (1AB) (a) to (c) is suspended until the price rises again or the forecast price is amended by the next Budget or pre-Budget Report.”.’.