Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential financial impact for electric vehicle owners caused by the Vehicle Excise Duty becoming payable on EVs.

Vehicle Excise Duty (VED) is a tax on vehicles used or kept on public roads. As announced by the previous Government at Autumn Statement 2022, from April 2025, zero emission and hybrid cars, vans and motorcycles now pay VED in a similar way to petrol and diesel vehicles. Revenue from motoring taxes helps ensure we can continue to fund the vital public services and infrastructure that people and families across the UK expect.

The rates payable by electric vehicle owners are set out in the V149 rates tables published by the Driver and Vehicle Licensing Agency (DVLA), which can be found here: https://www.gov.uk/government/publications/rates-of-vehicle-tax-v149

The Tax Information and Impact Note published alongside Autumn Finance Bill 2022 set out the expected individual, business, equalities and other impacts of the change, and it can be found here: https://www.gov.uk/government/publications/introduction-of-vehicle-excise-duty-for-zero-emission-cars-vans-and-motorcycles-from-2025/introduction-of-vehicle-excise-duty-for-zero-emission-cars-vans-and-motorcycles-from-2025

The government remains fully committed to the electric vehicle transition, and at Budget 2025 announced £3.6bn of additional support for the electric vehicle market. This included £1.3 billion of additional funding for the Electric Car Grant, £200 million for chargepoint rollout, and increasing the Expensive Car Supplement threshold to £50,000 for electric vehicles.