Finance Bill

With this it will be convenient to discuss the following: New clause 7— Vehicle mileage costs— ‘The Treasury shall publish annually alongside the Pre-Budget report an estimate of the average cost of operating a motor vehicle (including associated running costs and depreciation) per mile for a vehicle driving 10,000 miles per year for— (a) a vehicle registered before 1st March 2001 paying a pre-graduated Vehicle Excise Duty with an engine size 1549cc below; (b) a vehicle registered before 1st March 2001 paying pre-graduated Vehicle Excise Duty with an engine size above 1549cc; and (c) a vehicle registered after 1st March 2001 liable to pay graduated Vehicle Excise Duty in each of the VED bands A-M with effect from 1st April 2009.’. New clause 8— Fuel duties: rates and rebates: general fuel duty regulator— ‘(1) HODA 1979 is amended as follows. (2) In section 6 (excise duty on hydrocarbon oil) after subsection (1A) (as substituted by section 11 of this Act) insert— ““(1AA) In every Budget Statement and pre-Budget Statement the Chancellor of the Exchequer must provide a forecast for oil prices and set out anticipated yield from fuel duty and VAT on fuel for that price and for a range of prices up to 50 per cent. above his forecast. (1AB) The Treasury must, following each such statement, by regulations made by statutory instrument reduce the rates of duty specified in subsection (1A) in direct proportion to the increase in the costs accounted for by VAT. (1AC) Whenever international oil prices rise above the level estimated by the forecast made in accordance with subsection (1AA), indexed fuel duty increases shall not take effect until the international oil prices return to the forecast level or the forecast price is amended by the next Budget or pre-Budget Statement.””’. New clause 9— Fuel duties: rates and rebates: road hauliers and remote rural areas— ‘(1) HODA 1979 is amended as follows. (2) In section 6 (excise duty on hydrocarbon oil) after subsection (1A) (as substituted by section 11 of this Act) insert— ““(1AA) In every Budget Statement and pre-Budget Statement the Chancellor of the Exchequer must provide a forecast for oil prices and set out anticipated yield from fuel duty and VAT on fuel for that price and for a range of prices up to 50 per cent. above his forecast. (1AB) The Treasury must— (a) following each such statement, by regulations made by statutory instrument reduce the rates of duty specified in subsection (1A) in direct proportion to the increase in the cost accounted for by VAT; (b) provide a mechanism to pay the reduction directly to road hauliers with an ‘O’ licence including a restricted licence, a standard licence or a standard international licence; (c) bring forward proposals not later than the pre-Budget Statement 2008 to provide specific fuel duty reductions targeted at fuel sold in remote rural areas. (1AC) Whenever international oil prices rise above the level estimated by the forecast made in accordance with subsection (1AA), indexed fuel duty increases shall not take effect until the international oil prices return to the forecast level or the forecast price is amended by the next Budget or pre-Budget Statement.””’. New clause 14— Remote rural fuel discount scheme— ‘(1) The Treasury shall by regulations provide for the introduction, by no later than 1 April 2009, of a remote rural fuel discount scheme. (2) The purpose of the scheme is to provide a rebate on road fuel duty at qualifying retail outlets in qualifying areas to reduce the premium paid for fuel in such areas over the national average. (3) Qualifying retail outlets under subsection (2) are outlets located in qualifying areas meeting any criteria as defined under subsection (4). (4) Qualifying areas are remote rural areas as may be defined by regulations under subsection (4). (5) Regulations under subsection (1) may— (a) specify the amount of the fuel duty rebate; (b) define ““remote rural areas””; (c) define qualifying retail outlets, including any restriction; (d) specify how the rebate is to be applied, including— (i) authorising HMRC to define procedures and conduct audits, and (ii) how any administrative costs are to be defrayed; (e) provide for it to be an offence for a person fraudulently to supply or sell rebated fuel other than as proscribed by these regulations; (f) provide for a system of registration of eligible retail outlets; (g) provide for the scheme to be administered in Scotland by the Scottish Executive and in Wales by the Welsh Ministers.’. Amendment No. 9, in clause 15, page 8, line 9, at end insert— ‘(3A) In paragraph 1C (the reduced rate)— (a) in sub-paragraph (1) for ““or C”” substitute ““C or D””; (b) after sub-paragraph (4) insert— ““(4A) Condition D is that the vehicle is an off-road working vehicle.””; (c) in sub-paragraph (6) insert at the appropriate place— ““““off-road working vehicle”” means, subject to any provision which may be made by the Treasury in regulations made by statutory instrument, any vehicle which is used primarily for business purposes off adopted roads,””.’. Amendment No. 7, page 8, line 21, leave out from ‘to’ to end of line 22 and insert ‘any licence taken out in respect of a vehicle first acquired on or after 13 March 2008. (7) In this section ““first acquired””, in relation to a vehicle means acquisition when it has not previously been owned.’. Government amendments Nos. 22 and 23.