Asked by: Richard Holden (Conservative - North West Durham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what representations were made to his Department by the former hon. Member for North West Durham in advance of the application of the new rates of Vehicle Excise Duty on motorhomes on 1 September 2019.
Answered by Simon Clarke
The department has received a number of representations from both former and current members of Parliament on this issue and I am sensitive to their concerns. The Government is considering the impact of changes to Vehicle Excise Duty (VED) to motorhomes carefully.
As with all taxes, the Government keeps the VED treatment of motorhomes under review. Any changes will be considered by the Chancellor and announced at fiscal events.
Asked by: Richard Holden (Conservative - North West Durham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much revenue has been raised from Vehicle Excise Duty (VED) on sales of new motorhomes in each month since 1 September 2019; what the projected figure was for (a) each of those months and (b) 2019-20; and what adjustment has been made to the forecast for VED revenues for 2019-20 from the sales of new motorhomes in the light of sales since 1 September 2019.
Answered by Simon Clarke
Reliable estimates are not available for the Vehicle Excise Duty revenue made from motorhomes for any periods. In order to make an estimate this would only be available at disproportionate cost.
The latest VED forecast was published as part of Spring Statement 2019. No adjustment was made in this forecast due to the sales of new motorhomes from 1st September 2019. To see the VED forecast made at Spring Statement 2019, see page 76 of the latest OBR Economic and Fiscal Outlook in the link below:
https://obr.uk/download/economic-and-fiscal-outlook-march-2019/
Asked by: Paul Girvan (Democratic Unionist Party - South Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if his Department will publish an assessment of the potential effect on the hospitality and tourism sectors of the introduction of vehicle excise duty on motorhomes.
Answered by Simon Clarke
This Government is committed to supporting the tourism and leisure industries in the United Kingdom.
However, we are also committed to achieving our climate change targets. Road transport is responsible for almost a quarter of UK domestic greenhouse gas emissions. As such, the Government believes it is right that road vehicles are taxed in accordance with their environmental impact.
I have met with representatives of the industry and I am sensitive to their concerns. As with all taxes, the Government keeps the VED treatment of motorhomes under review. Any changes will be considered by the Chancellor and announced at fiscal events.
Asked by: David Davis (Conservative - Haltemprice and Howden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment the Government has been made of the effect of recent changes to Vehicle Excise Duty on the motorhome industry in (a) the UK, (b) Yorkshire and the Humber and (c) Haltemprice and Howden constituency.
Answered by Simon Clarke
The Government reformed VED for motorhomes to encourage the uptake of vehicles with lower carbon dioxide (CO2) emissions to help us meet our legally binding climate change targets. It is right that under the reformed system motorhomes with high CO2 emissions pay greater first year VED than those with lower emissions.
However, I have met with representatives of the industry and I am sensitive to their concerns. The Government is committed to levelling up economic performance throughout the country, including in Yorkshire and the Humber.
As with all taxes, the Government keeps the VED treatment of motorhomes under review. Any changes will be considered by the Chancellor and announced at fiscal events.
Asked by: Christopher Chope (Conservative - Christchurch)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to classify motorhomes as commercial vehicles for taxation purposes; and if he will make a statement.
Answered by Simon Clarke
The Government reformed Vehicle Excise Duty (VED) to encourage the uptake of vehicles with lower CO2 emissions to help us meet our legally binding climate change targets. It is right that under the reformed system motorhomes with high CO2 emissions pay greater first year VED than those with lower emissions.
I met representatives of the industry to discuss the matter and I understand their concerns. As with all taxes, the Government keeps the VED treatment of motorhomes under review.
Asked by: Alberto Costa (Conservative - South Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of reclassifying motorhomes as private cars for the purpose of vehicle excise duty.
Answered by Simon Clarke
Since 1 September 2019, motorhomes are captured by the same VED regulations as light passenger vehicles. These reforms encourage the take-up of vehicles with low carbon dioxide (CO2) emissions to help meet legally binding climate change targets. Transport is the largest sector for UK greenhouse gas emissions (27%), of which road transport accounts for over 90%.
Whilst the Government recognises the concerns of the leisure industry, tax is only one of many factors impacting purchasing decisions. Like all taxes, the Government keeps the VED treatment of motorhomes under review. Any changes will be considered by the Chancellor and announced at fiscal events.
Asked by: Dan Jarvis (Labour - Barnsley Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Answer of 9 September 2019 to Question 284157, what assessment he has made of the economic effect on the UK motorhome industry of reclassifying motorhomes as cars for tax purposes.
Answered by Simon Clarke
The government uses Vehicle Excise Duty (VED) to encourage the take-up of vehicles with low carbon dioxide (CO2) emissions to help meet our legally binding climate change targets. Transport is the largest sector for UK greenhouse gas emissions (27%), of which road transport accounts for over 90%.
Whilst the Government recognises the concerns of the leisure industry, tax is only one of many factors impacting purchasing decisions. Like all taxes, the Government is keeping the VED treatment of motorhomes under review. Any changes will be considered by the Chancellor and announced at fiscal events.
Asked by: Ruth Jones (Labour - Newport West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, was assessment he has made of the reclassification of motorhomes from private light goods vehicles to cars for the purpose of Vehicle Excise Duty on the motorhome industry.
Answered by Jesse Norman
Since April 2017, the government has used a reformed Vehicle Excise Duty (VED) system that encourages the take-up of vehicles with low carbon dioxide (CO2) emissions to help meet our legally binding climate change targets. It is right that vehicles with high CO2 emissions pay higher first year VED than those with lower emissions.
From September 2019, all multi-stage build vehicles, including motorhomes, must also record the CO2 emissions and fuel consumption on their type approval certificate. Apart from a small number of end-of-series derogations, all new registrations of multi-stage build vehicles must comply. Existing registrations are not impacted.
To provide industry and motorists with time to prepare, the change in measuring CO2 emissions was announced at Autumn Budget 2017.
Asked by: Emma Hardy (Labour - Kingston upon Hull West and Hessle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect on the motorhome industry of the reclassification of the majority of motorhomes as cars for Vehicle Excise Duty.
Answered by Jesse Norman
Since April 2017, the government has used a reformed Vehicle Excise Duty (VED) system that encourages the take-up of vehicles with low carbon dioxide (CO2) emissions to help meet our legally binding climate change targets. It is right that vehicles with high CO2 emissions pay higher first year VED than those with lower emissions.
From September 2019, all multi-stage build vehicles, including motorhomes, must also record the CO2 emissions and fuel consumption on their type approval certificate. Apart from a small number of end-of-series derogations, all new registrations of multi-stage build vehicles must comply. Existing registrations are not impacted.
To provide industry and motorists with time to prepare, the change in measuring CO2 emissions was announced at Autumn Budget 2017.
Asked by: Emma Hardy (Labour - Kingston upon Hull West and Hessle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect of the increase in vehicle excise duty for motorhomes on the sustainability of the industry.
Answered by Jesse Norman
Since April 2017, the government has used a reformed Vehicle Excise Duty (VED) system that encourages the take-up of vehicles with low carbon dioxide (CO2) emissions to help meet our legally binding climate change targets. It is right that vehicles with high CO2 emissions pay higher first year VED than those with lower emissions.
From September 2019, all multi-stage build vehicles, including motorhomes, must also record the CO2 emissions and fuel consumption on their type approval certificate. Apart from a small number of end-of-series derogations, all new registrations of multi-stage build vehicles must comply. Existing registrations are not impacted.
To provide industry and motorists with time to prepare, the change in measuring CO2 emissions was announced at Autumn Budget 2017.