Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department plans to take steps to cover the potential reduction in road tax receipts after the sale of new petrol and diesel vehicles is banned in 2030.

In his 2022 Autumn Statement, the Chancellor announced that from April 2025 electric cars, vans and motorcycles will begin to pay Vehicle Excise Duty (VED, also known as ‘Road Tax’) in the same way as petrol and diesel vehicles. The Government has made clear since 2020 that motoring taxes need to keep pace with the change to electric vehicles. With the electric vehicle transition accelerating, and with tough decisions to be made on tax to secure the public finances, it’s right that all drivers will start to make a fair tax contribution.

As with all taxes, VED is kept under review and any changes are considered and announced by the Chancellor.