Clause 15 — Rates of vehicle excise duty

Part of Orders of the Day – in the House of Commons at 10:00 pm on 29 April 2008.

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Photo of Angela Eagle Angela Eagle The Exchequer Secretary, Member, Labour Party National Executive Committee 10:00, 29 April 2008

Thank you, Mrs. Heal. I want to emphasise the Government's reasons for opposing amendment No. 6. We do not believe that it is appropriate to use the independent committee on climate change to audit the Government. As we move forward, it is important that we follow the King report's recommendation about making use of new technology. For example, we can ensure that better engine technology reduces emissions if we use VED to send the proper signals to motorists. By the time that the announcements in this year's Budget come into force, 15 of the 30 best selling cars in 2006 will be better off in VED terms, while nine will be no worse off. That means that people will be able to migrate to lower-emission cars in the same class.

We also hope that these tax signals and changes will result, reasonably quickly, in the development of 4x4s in lower VED bands so that people can not only drive the class of car that they want but have lower-emission cars, thereby ensuring that over time we will be able to make considerable carbon savings.

I wish to emphasise that the Government will vote against amendment No. 6 and hope that the clause will stand part of the Bill.