Written question asked by Jonathan Sayeed (Conservative) on Monday, 24 January 2005, in the House of Commons. It was due for an answer on Thursday, 27 January 2005. It was answered by John Healey (Labour) on Thursday, 27 January 2005 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, what his target differential is between the prices of red diesel and road diesel; what further increases in duty levels he expects to make to meet this target; and when he expects that the target will be met; what assessment the Government has made of the impact of the recent rise in the duty on red diesel on (a) farmers, (b) the boating industry and (c) the plant industry; and if he will make a statement.

Answer: Mr. Sayeed: To ask the Chancellor of the Exchequer (1) what his target differential is between the prices of red diesel and road diesel; what further increases in duty levels he expects to make to meet this target; and when he expects that the target will be met; [211401] (2) what assessment the Government have made of the impact of the recent rise in the duty on red diesel on (a) farmers, (b) the boating industry and (c) the plant industry; and if he will make a statement. [211402] John Healey: Oils fraud has significant Exchequer costs. The narrowing of the duty differential is one component of a wider fraud strategy and there is no target rate. Decisions on duty rates are taken on a Budget-by-Budget basis by the Chancellor, who takes account of all relevant social, economic and environmental factors when deciding taxation policy. Decisions on duty rates will be set out in the Budget.

Secondary information