Question to the Department for Transport:

To ask the Secretary of State for Transport, what enforcement action the DVLA can take against untaxed vehicles parked on roads for business purposes; and what resources are available for this action in Milton Keynes.

Answered by Guy Opperman

All mechanically propelled vehicles that are used or kept on a public road must be registered and taxed. The Driver and Vehicle Licensing Agency (DVLA) operates a comprehensive package of measures to tackle untaxed vehicle, including those used for business purposes. These range from automatic number plate recognition cameras, wheelclamping, the removal and impounding of untaxed vehicles, and court prosecutions.

When the DVLA is made aware of an untaxed vehicle, a report is sent to its national wheelclamping contractor NSL Services Ltd (NSL); so that they can, where appropriate, take enforcement action. NSL maximises its resources by visiting different areas on a daily basis.

Question to the Department for Transport:

To ask His Majesty's Government what estimate they have made of the number of untaxed vehicles driving on UK highways.

Answered by Lord Davies of Gower - Shadow Secretary of State for Wales

The outcome of the most recent roadside survey, which provides an estimate of the number of unlicensed vehicles in traffic, was published in December 2023. This showed that 98.7 per cent of vehicles across the UK were correctly licensed, which equates to an estimated 498,000 unlicensed vehicles and an evasion rate of 1.3 per cent.

The survey indicated that five per cent of the estimated 498,000 unlicensed vehicles were subject to a statutory off-road notification.

Question to the Department for Transport:

To ask the Secretary of State for Transport, how many and what proportion of vehicles on the Driver and Vehicle Licensing Agency database are not taxed in (a) England and (b) Easington constituency.

Answered by Guy Opperman

The outcome of the most recent roadside survey, which provides an estimate of the number of unlicensed vehicles in traffic, was published in December 2023. This showed that 98.7 per cent of vehicles across the UK were correctly licensed, which equates to an estimated 498,000 unlicensed vehicles and an evasion rate of 1.3 per cent. The estimated evasion rate in England was also 1.3 per cent. This information is not held by parliamentary constituency. A copy of the roadside survey can be viewed at: https://www.gov.uk/government/statistics/vehicle-excise-duty-evasion-statistics-2023/vehicle-excise-duty-evasion-statistics-2023.

Question to the Department for Transport:

To ask the Secretary of State for Transport, what statutory powers the DVLA has to remove untaxed vehicles parked on residential streets.

Answered by Guy Opperman

Section 29 of the Vehicle Excise and Registration Act 1994 makes it an offence to use or keep an unlicensed vehicle on the public road. Where such an offence has been committed, Schedule 2A of the Vehicle Excise and Registration Act 1994, as well as the Vehicle Excise Duty (Immobilisation, Removal and Disposal of Vehicles) Regulations 1997, provide the statutory powers to immobilise and remove vehicles.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of raising the threshold for the vehicle excise duty surcharge in line with vehicle price increases since 2015.

Answered by Gareth Davies - Shadow Exchequer Secretary (Treasury)

The Vehicle Excise Duty surcharge is a supplement in addition to the standard rate of Vehicle Excise Duty, which is applied to cars with a list price of over £40,000. This surcharge is also known as the Expensive Car Supplement, and is payable for five years following the first registration of the vehicle, commencing in year two, with the final payment due in year six.

The £40,000 threshold was set as a suitable way of distinguishing the more luxury end of the new car market, meaning those who can afford the most expensive cars pay more than the standard rate paid by other drivers.

However, the Government recognises that transport is a major cost for individuals and families. That is why, at Spring Budget 2023, the Government announced it would maintain the rates of fuel duty at the levels set on 23 March 2022 for an additional 12 months, by extending the temporary 5p fuel duty cut and cancelling the planned inflation increase for 2023-24. That represents a saving of around £100 for the average car driver this year.

As with all taxes, the Government keeps the Expensive Car Supplement under review, and any changes will be announced at a future fiscal event.

Question to the Department for Transport:

To ask His Majesty's Government what was the value in real terms of vehicle excise duty receipts each year since 2000 for which figures are available.

Answered by Lord Davies of Gower - Shadow Secretary of State for Wales

Information about the value in real terms of vehicle excise duty (VED) receipts is not held. The table below provides the VED figures reported in the published Annual Report & Accounts between years 2005-06 and 2022-23. Net Revenue stated as VED in the Statement of revenue & expenditure published Accounts.

Question to the Department for Transport:

To ask the Secretary of State for Transport, what recent steps his Department has taken to ensure that V11 reminder forms are (a) sent on time and (b) not sent in duplicate.

Answered by Guy Opperman

The Driver and Vehicle Licensing Agency (DVLA) issues more than two million V11s reminders each month.

Non-delivery of the reminder can be caused by a variety of reasons, including instances such as the vehicle keeper moving house and failing to advise the DVLA of their new address. However, it remains the responsibility of the vehicle keeper to ensure their vehicle is properly licensed or subject to an off road notification. The DVLA has processes in place to mitigate against the possibility of duplicate V11s being issued.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of linking road tax thresholds to the level of car prices.

Answered by Gareth Davies - Shadow Exchequer Secretary (Treasury)

Rates of Vehicle Excise Duty (also known as ‘road tax’) depend on the vehicle’s date of first registration and characteristics such as emissions. In 2017, the Government made changes to the VED system to incentivise the uptake of cleaner vehicles. In his 2022 Autumn Statement, the Chancellor announced that from April 2025 electric cars, vans and motorcycles will begin to pay VED in the same way as petrol and diesel vehicles.

Owners of more expensive cars already pay an additional VED supplement for the first five years after registration. This applies to cars with a list price of £40,000 or over.

As with all taxes, VED is kept under review and any changes are considered and announced by the Chancellor.

Question to the Department for Transport:

To ask the Secretary of State for Transport, whether his Department plans to allow disabled people who are in receipt of the standard mobility award for Personal Independence Payment to pay their vehicle tax to the DVLA through a direct debit scheme.

Answered by Richard Holden

Data on whether an individual is entitled to the enhanced or standard rate mobility component of the personal independence payment is held by the Department for Work and Pensions (DWP). The Driver and Vehicle Licensing Agency (DVLA) is working with the DWP on how data can be shared securely and appropriately between the two departments. Once this has been established, the DVLA will consider the technical developments needed to allow such applications to be accepted online and to pay by direct debit.

Question to the HM Treasury:

To ask His Majesty's Government what plans they have to review the historic vehicle tax exemption by altering the 40-year rule to 30 years.

Answered by Baroness Penn - Shadow Minister (Housing, Communities and Local Government)

At Budget 2014 the Government announced that it would introduce a rolling 40-year Vehicle Excise Duty (VED) exemption for classic cars in recognition of their important contribution to UK heritage and culture.

The Government has set 40 years as being a fair cut-off date to distinguish classic cars from those that are simply older vehicles and there are no current plans to reduce the tax exemption age to 30 years.

As with all taxes, VED is kept under review and any changes are considered and announced by the Chancellor.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Answer of 9 September 2019 to Question 287534 on Roads: Repairs and Maintenance, what his policy is on the hypothecation of Vehicle Excise Duty to roads spending.

Answered by John Glen - Shadow Paymaster General

Revenue raised through English Vehicle Excise Duty is being reinvested into the English road network between 2020-2025 to fund road enhancement projects including the second Road Investment Strategy (RIS2), which is the largest ever investment in England’s motorways and A Roads.

Spending Review 2021 confirmed £24 billion of strategic roads investment between 2020 and 2025 and over £8 billion investment for local roads maintenance and enhancements over this Parliament to fill millions of potholes a year, resurface roads and repair bridges, as well as delivering vital local road upgrades.

Spring Budget 2023 also provided an additional £200m in 23-24 to maintain and improve local roads. This increase will enable local authorities in England to fix more potholes, complete resurfacing, and invest in major repairs and renewals, such as keeping bridges and major structures open. The increase is expected to fix the equivalent of up to four million additional potholes across the country.

Question to the Department for Transport:

To ask the Secretary of State for Transport, what income was generated by Road Tax in the last five financial years.

Answered by Richard Holden

The amount of vehicle excise duty collected in the last five financial years for which audited figures are available, is shown in the table below.

As with all taxation, HM Treasury owns the policy on VED.

Question to the HM Treasury:

To ask His Majesty's Government how much was collected in (1) road and (2) petrol, tax during the last two years for which information is available; and how much of that was invested in roads.

Answered by Baroness Penn - Shadow Minister (Housing, Communities and Local Government)

Receipts for Vehicle Excise Duty (‘road tax’) and fuel duties, which incorporate various types of fuel including petrol (‘petrol tax’) for the last two available years were set out by the Office of Budget Responsibility in March 2022 and March 2023, and are as follows:

Vehicle Excise Duty, 2021-22: £7.1bn

Fuel duties, 2021-22: £25.9bn

Vehicle Excise Duty, 2020-21: £6.9bn

Fuel duties, 2020-21: £27.6bn

Income raised by the government, including tax receipts but also income from fees, charges or borrowing, is centralised in the Consolidated Fund - from which government expenditure, including on roads, is funded.

Government spending on roads in the same time period is set out by the Department for Transport on gov.uk, and is as follows:

Strategic road network in England, 2021/22: £5.6bn

Capital funding for local roads maintenance in England (outside London), 2021/22: £1.4bn

Strategic road network in England 2020/21: £5bn

Capital funding for local roads maintenance in England (outside London), 2020/21: £1.8bn

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to balance the potential financial impact of changes to Vehicle Excise Duty from 2025 on owners of (a) internal combustion engine vehicles and (b) electric vehicles with potential national economic impacts.

Answered by Gareth Davies - Shadow Exchequer Secretary (Treasury)

At Autumn Statement, the Chancellor announced that from April 2025 electric cars, vans and motorcycles will begin to pay VED in the same way as petrol and diesel vehicles.

The tax treatment for ICE vehicles will remain the same, with those registered after 2017 paying a first-year rate, based on emissions, before moving to a standard annual rate – currently set at £180.

Removing the VED exemption from April 2025 adds fairness to the tax system, and its impact should be minimal given the marginal cost of VED compared to the overall cost of a vehicle . The government has also announced the continuation of incentives for electric vehicles through company car tax, which will likely continue to be effective in incentivising EV take up, and investment in chargepoint infrastructure.

Question to the Department for Transport:

To ask the Secretary of State for Transport, what recent estimate his Department made of the number and proportion of vehicles that were untaxed in the last two years.

Answered by Richard Holden

The Driver and Vehicle Licensing Agency (DVLA) operates a comprehensive package of measures to tackle unlicensed vehicles. These range from reminder letters, penalties and court prosecutions through to the use of automatic number plate recognition cameras, wheelclamping and the removal of unlicensed vehicles. The DVLA is currently running a publicity campaign to highlight the consequences of not licensing vehicles. The DVLA also runs adverts on social media, mobile gaming, search engines, poster sites, and radio.

The DVLA collects more than £7 billion in vehicle excise duty each year on behalf of HM Treasury. Every two years, a roadside survey is carried out to estimate the number of unlicensed vehicles on the roads. The last survey, carried out in June 2021, showed that 98.1 per cent of vehicles were correctly licensed.

Question to the Department for Transport:

To ask the Secretary of State for Transport, what steps his Department is taking to help reduce the number of untaxed vehicles.

Answered by Richard Holden

The Driver and Vehicle Licensing Agency (DVLA) operates a comprehensive package of measures to tackle unlicensed vehicles. These range from reminder letters, penalties and court prosecutions through to the use of automatic number plate recognition cameras, wheelclamping and the removal of unlicensed vehicles. The DVLA is currently running a publicity campaign to highlight the consequences of not licensing vehicles. The DVLA also runs adverts on social media, mobile gaming, search engines, poster sites, and radio.

The DVLA collects more than £7 billion in vehicle excise duty each year on behalf of HM Treasury. Every two years, a roadside survey is carried out to estimate the number of unlicensed vehicles on the roads. The last survey, carried out in June 2021, showed that 98.1 per cent of vehicles were correctly licensed.