Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will consider the potential merits of excluding hybrids cars from the Vehicle Excise Duty Expensive Car Supplement (a) after three years from the date of first registration and (b) when their resale value falls below £28,000.

The ECS applies to new petrol/diesel and hybrid cars with a list price of £40,000 or more, while as announced at Budget 2025, from 1 April 2026 the ECS will apply to new zero-emission cars with a list price of £50,000 or more which are first registered on or after 1 April 2025. The additional charge was introduced so that those who can afford to access the most expensive cars make a fair contribution.

The Government continues to view the Expensive Car Supplement (ECS) as a suitable way of distinguishing the more luxury end of the new car market. Although average list prices of cars have increased since the ECS was introduced, nearly two-thirds of petrol, diesel and hybrid vehicles still fall below the £40,000 threshold.

The Government annually reviews the rates and thresholds of taxes and reliefs, including Vehicle Excise Duty and the ECS, to ensure that they are appropriate and reflect the current state of the economy.