Protecting the environment

The Government believes that economic growth must be achieved while protecting the environment, to ensure a better quality of life for current and future generations. Budget 2002 takes further steps to improve the environment, while responding to recent high and volatile oil prices:

further tax incentives to encourage business to invest in energy-saving technologies;

freezing all fuel duties, including ultra-low sulphur petrol and diesel, lowering duty rates by around one pence per litre in real terms, and introducing new duty incentives in 2003 to promote sulphur-free fuels;

freezing vehicle excise duty (VED) rates, introducing a new discounted rate for the most efficient cars, and reforming VED for motorbikes; and

freezing air passenger duty (APD) and extending the lower rates of APD to include flights to a wider range of European destinations.