Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent estimate his Department has made of the potential effect of the take-up of zero emission vehicles on receipts to the Exchequer from fuel duty in (a) 2025, (b) 2030, (c) 2040 and (d) 2050.

The Government is committed to achieving net-zero carbon emissions by 2050 and the transition towards electric vehicles and the phase out of new petrol and diesel cars and vans will make a vital contribution to this.

The interim Net Zero Review report in December last year highlighted that structural changes in the economy related to net zero will have fiscal implications. Much of the revenue from fossil fuel-based taxes is likely to be eroded during the transition to a net zero economy. However, there is currently a high level of uncertainty regarding the effect on receipts.

As we move forward with this transition, the Government will need to ensure that revenue from motoring taxes keeps pace with this change, so that the Government can continue to fund the first-class public services and infrastructure that people and families across the UK expect.