Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department plans to reintroduce measures to increase tax on higher polluting vehicles.

Vehicle Excise Duty (VED) is a tax on vehicles used or kept on public roads. As announced by the Government at Autumn Statement 2022, from April 2025, zero emission and hybrid cars, vans and motorcycles will begin to pay VED in a similar way to petrol and diesel vehicles.

While first year rates for zero emission cars have been frozen at £10 until 2029/30, rates for the most polluting vehicles that emit over 76mg/km have doubled.

In addition, at Autumn Budget 2024 the government announced Company Car Tax rates will continue to strongly incentivise the take-up of electric vehicles. Appropriate Percentages (APs) for all vehicle bands above 50 g/km will increase by 1 percentage point per year in 2028-29 and 2029-30. The maximum AP will also increase by 1 percentage point per year to 38% for 2028-2029 and 39% for 2029-2030.

Revenue from motoring taxes helps ensure we can continue to fund the vital public services and infrastructure that people and families across the UK expect.