Schedule 28
Finance Bill
1:30 pm
Kitty Ussher (Parliamentary Secretary, HM Treasury; Burnley, Labour)
Overwhelmed, indeed, by the opportunity and privilege of debating with the hon. Gentleman again today.
The points that have been made are valid. The schedule does three things: shifts down the CO2 emission threshold for the main company car tax band by 5g CO2 per km; abolishes the cap on company car list prices for the purposes of CCT; and—I think this is uncontroversial—simplifies the legislative means by which the appropriate percentage for electric cars in CCT is set.
On the point made by the hon. Member for South-West Hertfordshire, we have, of course, considered the impact on the industry. The impact, if there is any at all, is negligible, for the simple reason that only around 1,700 company cars retail at more than £80,000. The price range may be extremely wide. I think the figure of £300,000 was mentioned. People who purchase that type of car should easily be able to cope with what we propose. There is no policy reason for a cap. On the point made by the hon. Member for Henley, it therefore follows that it would not make any difference if the cap were raised to £100,000.