Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of (a) allowing the payment of and (b) refunding Vehicle Excise Duty on a (i) daily and (ii) weekly basis.

Since 1 October 2014, customers have had the option to pay VED monthly or in two instalments per year via direct debit, with a 5% surcharge. This scheme enables the spreading of VED payments at a lower surcharge rate than non-direct debit instalments, and helps individuals and families to plan and manage their finances.

When considering changes to tax administration, the Government must balance a range of competing objectives such as complexity in the tax system, administrative burdens and cost.

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.