Motor Vehicles: Excise Duties

(asked on 10th March 2025) - View Source

Question to the HM Treasury:

To ask His Majesty's Government what plans they have to allow local authorities to retain part of the income from vehicle tax in their area for use by highways departments.


Answered by
Lord Livermore Portrait
Lord Livermore
Financial Secretary (HM Treasury)
This question was answered on 20th March 2025

The Government uses the proceeds of Vehicle Excise Duty (VED) and other tax revenues to support public services and investment in infrastructure including the road network. There are no current plans to devolve or hypothecate VED revenues in part or in full to local authorities.

The Government is going well beyond its promise to fix an additional one million potholes per year, by providing a £500 million cash increase on 2024/25 local roads maintenance baseline funding. This will be enough to fix the equivalent of more than seven million extra potholes in 2025/26.

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