In response to the Chancellor’s announcement that the fuel duty rebate for biofuels will expire from 2010 Jonathan Nash, Managing Director of Saab Great Britain, ‘fears that the Government has turned its back on biofuels.’
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“I am deeply disappointed that the Chancellor has announced the removal of the fuel duty rebate for biofuels from 2010. The lack of long term consumer incentives for the use of high blend biofuels is a clear indication of the Government turning its back on this technology.
“Although the Chancellor has stated he will encourage the development of sustainable biofuels by increasing the buy-out price for suppliers under the Renewable Transport Fuels Obligation, we are fearful that this will do nothing to encourage the use of E85 and could drive up the cost of eco-friendly bioethanol E85 at the pump for the consumer.
“The UK continues to fall behind other European countries where a more generous package of incentives is encouraging consumers and fuel providers to embrace this exciting technology right now, and reduce the environmental impact of their new car purchase.’
In other reaction to yesterday’s Budget Statement, the SMMT joined the chorus of industry criticism of changes to road tax (VED).
The SMMT said sales taxes on higher emitting cars have little effect on CO2 emissions and create an unwelcome market distortion.
“Since the introduction of CO2-based road tax in 2001, there has been a clear trend towards lower-CO2 new cars,” said SMMT chief executive Paul Everitt. “Encouraging even more buyers to choose models with class-leading emissions should be the priority. We are therefore pleased to see an increase in the number of bands to 13 from 2009.
“However, introducing what is effectively a sales tax for many new cars is a retrograde step. Trying to force people out of high-value cars has no environmental merit and will be seen as a smokescreen for revenue-raising.”
See also:
EXCLUSIVE: UK bioethanol market to stall without fuel duty cut – Ford
UK: Budget includes prospect of VED reform
UK: Band-based CO2 taxation needs another look – analyst
