Subject to state aid approval, the government intends to extend the scope and length of the current relief for aggregates in Northern Ireland. The new relief will continue to cover aggregate in processed products and be extended to cover virgin aggregate, coming into effect during 2004 and fixed at the current level of 80% of the full rate until 31 March 2012.
The eligibility criteria for climate change agreements will be extended. Such agreements offer 80% reductions in the climate change levy in return for negotiated environmental agreements.
The government has concluded that the environmental benefits from LPG do not warrant the current level of duty differential. Therefore the rate for LPG will be gradually increased.
The government has announced a three year rolling commitment to the duty differentials between the main road fuels and all alternative fuels. The relative rates will be announced in the spring 2004 Budget.