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Motor Vehicles: Excise Duties

Question for Treasury

UIN 207290, tabled on 10 January 2019

To ask the Chancellor of the Exchequer, how much money has been raised for the public purse from vehicle excise duties from the Greater London Authority area in each year for which information is available; and what assessment he has made of the potential merits of devolving the proceeds of vehicle excise duties raised in the Greater London Authority area to London local authorities.

Answered on

17 January 2019

In 2017-18, Vehicle Excise Duty (VED) raised a total of around £6.2 billion in revenue.

VED is collected nationwide and since it is tied to where individuals choose to register their vehicles, there is no official methodology to identify the VED collected in any particular region. As such, VED does not lend itself to devolution as vehicle registrations do not necessarily correlate with either emissions or vehicle use.

VED revenues will be hypothecated to the National Roads Fund (NRF) in England from 2020-21. The NRF will provide certainty for roads investment, including in London.

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