Written question asked by Bob Ainsworth (Labour), in the House of Commons. It was due for an answer on Wednesday, 19 March 1997. It was answered by John Bowis (Conservative) on Wednesday, 19 March 1997 on behalf of the Department of Transport.

Dept of Transport

Question: What assumptions the Treasury use when calculating the cash-flow loss to the Exchequer of being paid in two instalments for six month vehicle excise discs as against the single instalment for a 12 month disc.

Answer: Mr. Robert Ainsworth: To ask the Secretary of State for Transport what assumptions the Treasury uses when calculating the cash flow loss to the Exchequer of being paid in two instalments for six-month vehicle excise discs as against the single instalment for a 12-month disc. [20908] Mr. Bowis: The cash flow loss depends on the interest and inflation rates pertaining at any time. At the current Treasury discount rate of 6 per cent., and inflation of around 2.8 per cent., the loss on the private and light goods licence would be some £3.20 if the annual duty were paid in two six-monthly instalments.

Secondary information