Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, if he will make it his policy to allocate funds raised by vehicle excise duty to renewable energy and green transport initiatives.

The Chancellor announced at Summer Budget 2015 a reform of Vehicle Excise Duty (VED) to create a new Roads Fund. VED will be reformed for cars first registered from 1 April 2017, existing cars will remain in the current system. From 2020-21 all revenue raised from VED in England will be allocated to the new Roads Fund and invested directly back into the strategic road network. The government will engage with the Devolved Administrations on how the money is allocated there.