Vehicle Excise Duty: Carbon Dioxide Emissions

Baroness McIntosh of Hudnall Excerpts

Monday 29th June 2015 Lords Chamber

[Lord Ashton of Hyde]

My Lords, the Government do not explicitly promote diesel cars. The current tax system, introduced in 2001, covers the purchase of cars with low CO₂ emissions, regardless of whether they are petrol or diesel. I hope I can be a little more helpful on my noble friend’s question about testing. I am pleased to report that work has been going on for some time, at European and international level, to provide better testing. Although they will still be laboratory tests—so that they can be replicated around the world—a more accurate database will be included, which will more accurately simulate actual driving conditions.

[Baroness McIntosh of Hudnall (Lab)]

My Lords, will the noble Lord reconsider the answer he gave on whether the Government promote the use of diesel cars? I drive a diesel car, which I am rather ashamed to admit now that I know about the particulates that are emitted by it. However, that diesel car pays no road tax and, currently, no congestion charge. That may not be active promotion but it is certainly implicit promotion.

[Lord Ashton of Hyde]

I was referring to vehicle excise duty which, under the system introduced in 2001, simply addresses the amount of carbon produced. It does not promote one form of car over another: it just incentivises less carbon.