Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment his Department has made of the potential financial effect of the introduction of the Worldwide Harmonised Light Vehicles Test Procedure on company car drivers.

As the Worldwide harmonised Light vehicles Test Procedure (WLTP) aims to replicate real-world driving conditions more closely, it is expected that reported CO₂ values will increase.

Through the review of WLTP and vehicle taxes, the government has engaged with stakeholders to determine the impact on tax liabilities and the UK’s environmental objectives, including the role of company cars in reducing CO₂ emissions from road transport.

The review closed on 17 February and the responses are currently being analysed. The government has committed to publishing a response in the spring.