Question to the Department for Transport:

To ask the Secretary of State for Transport, what discussions he has had with his counterparts in HM Treasury about likely effects of the proposed methanol excise duty reduction to incentivise the increased use of methanol as a replacement for diesel in HGVs on (a) the wider fuel market and (b) the wider vehicle market.

Officials from the Department for Transport and Her Majesty’s Treasury are in regular contact on the development of proposals to change the duty rate for methanol.

These changes will provide businesses with the tax certainty they need to invest in alternatively fuelled commercial vehicles and improve air quality. The reduced rate will apply to methanol composed of 95% pure methanol, and 5% water.

Draft legislation will be published at the Autumn Statement for further consultation, including with representatives from the fuel industry and motor manufacturers.