Delivery on the 10 Year Plan - The verdict of the freight transport industry

Cleaner vehicles

Progress

The Government's strategy for encouraging the use of cleaner commercial vehicles has focused on two core elements:

• Grants towards the cost of fitting emissions reduction technologies and towards the additional cost of buying cleaner gas and electric vehicles
• A taxation policy which reflects the desire to bring cleaner vehicle technologies to the market

This strategy is being reinforced through additional grant funding from the Road Haulage Modernisation Fund and proactive assistance and advice for operators via the Modernisation Operator Scheme.

10 Year Plan promises	Government delivery to date
CLEANER VEHICLES INITIATIVE
Strengthen Powershift and Cleaner Vehicles programme		Creation of TransportEnergy which combines Powershift & CleanUp. Powershift received £11m in 2000/01 and is to receive £33m between 2001 and 2004. CleanUp received £6m in 2000/01 and is to receive £30m between 2001 and 2004, plus an additional £30 between April 2001 and April 2004 through the Road Haulage Modernisation Fund.
More than double annual spending on cleaner vehicle initiatives by 2003/04		Over 1,700 vehicles have been fitted with emissions reduction technology to date through direct funding by the Transport Energy CleanUp campaign.
Encourage use of heavy vehicles powered by natural gas		There are currently around 100,000 LPG vans and cars in the UK
150,000 LPG vehicles by 2005		There are currently around 900 CNG trucks in the UK
AIR QUALITY EMISSION TARGETS
Emissions of pollutants from vehicles will fall markedly		NOx emissions from road transport down 8% in 2001
		PM10 emissions from road transport the same in 2001
		Consultation promised on low sulphur gas oil
		Consultation launched on overhauling taxation of road fuel gases.
CO2 EMISSION TARGETS
20% reduction in CO2 by 2010		VED emission banding for cars
		Emission banding for company car tax
		Increases (20% + RPI) in free fuel tax liability
		CO2 emissions from road transport down 1% in 2001
TAX INCENTIVES FOR CLEAN VEHICLES
We will review how best to use economic measures to bring cleaner vehicle technologies to the market		Introduction of new low rate of duty for bio-diesel in July 2002
		VED discounts reduced from £1000 to £500
		Budget 2001 reduced duty to 9p per kilogramme and said this would not increase in real terms until 2004
		Graduated VED rates to encourage use of low emission van

Industry is concerned that £500 is insufficient to make the purchase and fitment of particulate traps commercially unattractive for operators. For a 7.5t truck, the maximum VED discount is £5 per year, while the cost of purchase and fitment of the trap is £2,500. Use of particulate traps is therefore limited to heavier vehicles, many of which are engaged on long distance trunking operations and spend only a fraction of their time in town and city centres where air quality problems are of greatest concern.

	Continue to Supporting Competitiveness and Best Practice
	Back to Rail performance
	Return to Introduction

Last updated: Wed Jul 21 14:21:17 2004