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Finance Bill

The hon. Member for Dundee, East (Stewart Hosie) is right. The economies in the remote parts of the United Kingdom are suffering greatly and are very fragile. Many of the businesses in those areas—farming, crofting, forestry and so on—need vehicles that can go off the road, and often the same vehicle is used for business purposes as for going into the village. Those businesses therefore need a reduced rate of VED. I am sympathetic to the amendment, but on the condition that the regulations to which it refers would have to be very tightly drawn to ensure that they are not abused. We would not, for example, want company cars, or even the First Minister's car, to be defined as working vehicles. The regulations would have to apply only in a rural situation and only to cars that are essential to the running of a rural business. It is not a question of creating a precedent. The hon. Gentleman already referred to existing precedents: police cars and cars used in the health service are exempt, as well as many others. There is a long list of exemptions already, and I urge the Government to accept the amendment so that there can be consultation on the regulations. Regulations should be drawn up that allow the reduced rate to be applied to vehicles that are essential to the operation of a small rural business. I hope that the Government will be sympathetic to rural business by accepting the amendment.