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Finance (No. 2) Bill

Given that we have not had the chance to vote on the Liberal Democrat amendments for reasons that have not been satisfactorily explained, I shall contribute briefly to the stand part debate. Tables A and B are the key to the clause. It is clearly sensible in principle to use the tax system to encourage motorists to go green. It therefore follows that one should tax the most polluting vehicles most heavily and the least polluting vehicles least heavily, if at all. Changes to vehicle excise duty bands must therefore be carried out with conviction and at least look to make a difference to consumer behaviour. Let me sum up the consensus of opinion of the organisations that commented on the Government’s proposals. It is that, although the Government are moving in the right direction, the changes lack conviction. Transport 2000 called the new top rate ““derisory”” and said that the changes would hardly pay for the new paperwork. Friends of the Earth called the changes ““utterly inadequate”” and said that they"““will not result in the widespread uptake of cleaner vehicles, and will, therefore, not reduce the rising cost of climate change to the transport sector.””" Greenpeace said that"““the Chancellor must know that £210 is far too little money to stop anyone buying a gas guzzler.””" On the lowest rate, it is not unreasonable to expect a tax incentive to be of some use to the consumer. Members on the Treasury Bench will be aware of the point that was made previously that no cars on which the new rate would apparently apply are currently available on the market. There therefore appears to be little conviction. There are two courses than an Opposition can take on the Government’s proposed changes. They could table amendments to try only to reduce the take from vehicle excise duty because one cannot propose an increase in a Finance Bill. If the Liberal Democrats want to do that, that is up to them. We believe that that is an irresponsible approach and that the Opposition should look forward to 2009, when my hon. Friend the Member for Tatton (Mr. Osborne) will present his first Budget. We will try to provide greater incentives at the bottom band and consider heavier increases at the top. If the Liberal Democrats want to make tax and spending pledges, that is up to them, but we cannot say whether our proposal will be a revenue-neutral package or constitute a reduction.