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Motor Vehicles: Excise Duties

Question for Treasury

UIN 908473, tabled on 8 January 2019

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of transferring the proceeds of vehicle excise duties raised in the Greater London Authority area to London local authorities.

Answered on

10 January 2019

The government has committed to hypothecate Vehicle Excise Duty (VED) in England from 2020-21 into the National Roads Fund (NRF), providing long-term certainty for roads investment. This will be used to maintain the country’s main arterial routes and enhance national road connectivity.

Devolving VED to London would undermine the purpose of the NRF to deliver nationally significant schemes across the strategic road network, including those in London such as the M25 and some recently announced Major Road Network candidates which will also be funded by the NRF.

Answered by

Treasury
Named day
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