Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has considered reviewing banding for vehicle excise duty based on emissions rather than registration date.
Different Vehicle Excise Duty (VED) rates apply to cars, vans, motorcycles and HGVs and the rate for each vehicle is calculated according to a range of factors, such as its date of first registration, weight, or CO2 emissions.
Since 2001, the VED system has encouraged the uptake of cars with low carbon dioxide (CO2) emissions to help meet the UK's legally binding climate targets. Cars first registered between 1 March 2001 and 31 March 2017 pay VED annually according to CO2 emissions.
From 1 April 2017, new cars pay a variable first year rate according to the emissions of the vehicle, with the most polluting currently paying over £5,400, and zero emission models currently pay £10. After the first year, most cars move to a standard annual rate, currently set at £195.