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Finance (No. 2) Bill

I was making the point that they are much more vulnerable to increases. We are therefore trying to release the mechanism so that it can be used to change behaviour effectively. In rural areas, it does not matter how the VED bands are set as people have to use a car. If they are on a lower income they are forced to spend more and more, so we are trying to provide relief for people who are disproportionately and unfairly affected. The mechanism can be used to change behaviour if there is an alternative. A series of amendments on the need for wider differentials was tabled by Liberal Democrat and Government Members who tried to provide a solution to the problem. I accept that it is not appropriate to refer directly to those amendments, but I urge the Government to consider them. They should investigate the differentials required to make an impact on behaviour and consider ways of implementing them. In the longer term, road user charging may represent a fairer alternative. The Government are looking into the feasibility of such a scheme, which Liberal Democrats support, and I hope that they will seriously consider the practicalities and time scales. An effective mechanism is required so that motorists pay when and where they are driving. That is a fairer way to target relieving congestion in problem areas without penalising people in rural areas, and it provides freedom from pollution, congestion and the effects of climate change. I hope that the Government will consider that alternative. In conclusion, the decisions in the Budget and the proposals in the Bill mean that green taxes will continue to drop as a proportion of the total tax take, regardless of the Chancellor’s warm words. The Bill was an opportunity to create real incentives for people to choose more environmentally friendly cars. It was an opportunity even to consider more radical proposals such as road user charging. It is an opportunity that has been wasted, and in its place we have seen tokenism of the worst kind.