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Motor Vehicles: Taxation

Question for Treasury

UIN 23288, tabled on 28 June 2021

To ask the Chancellor of the Exchequer, what options he is considering to ensure revenue from motoring taxes keeps pace with the transition away from petrol and diesel vehicles; and whether those options include (a) the introduction of a national road pricing scheme and (b) the taxing of electric vehicles on a similar basis to petrol or diesel vehicles.

Answered on

1 July 2021

The Prime Minister stated as part of the Ten Point Plan for a Green Industrial Revolution that the Government is committed to achieving net zero carbon emissions by 2050, and that the transition towards electric vehicles and the phase out of new petrol and diesel cars and vans will make a vital contribution to this.

As we move forward with this transition, and as you have acknowledged - we will need to ensure that revenue from motoring taxes keeps pace with this change, so that we can continue to fund the first-class public services and infrastructure that people and families across the UK expect.

All taxes are kept under review, and any changes to the tax system will be considered by the Chancellor and any further steps will be announced in due course.

Answered by

Named day
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