Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what comparative assessment she has made of (a) differences in vehicle excise duty between electric and petrol vehicles and (b) the impact of those vehicles on road conditions and associated maintenance costs.

Vehicles used or kept on public roads pay Vehicle Excise Duty (VED). Cars registered on or after 1 April 2017 pay a variable first year VED rate according to the emissions of the vehicle, before moving to a standard annual rate after the first year.

From 1 April 2025, the VED first year rates have also changed to support the take-up of electric vehicles (EVs), with higher rates for higher emitting hybrid and petrol/diesel vehicles, and the lowest rate for zero emission cars being frozen until 2029/30.

The increasing weight of all road vehicles, both EVs and their petrol and diesel counterparts, is one of many factors affecting the condition of our roads. It is the much heavier commercial vehicles, rather than passenger vehicles, that cause the most wear and tear to road surfaces and other highway structures.

When making changes to the tax system, the Government considers a range of trade-offs, such as complexity in the tax system and administrative burdens.

The Government annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy. The Chancellor makes decisions on tax policy at fiscal events in the context of the public finances.