Employee Car Ownership Schemes

Debate between Lord Stockwood and Lord Sentamu

Monday 8th December 2025 Lords Chamber

[Lord Stockwood (Lab)]

We believe that the tax system that has been applied is fair and balanced, but we are happy to take those points under consideration.

[Lord Sentamu (CB)]

My Lords, I welcome the Minister to the Front Bench of His Majesty’s Government. The noble Lord from the Official Opposition asked a question about the taxation of cars. I understand taxation for electric cars—that is pretty straightforward—but he asked about hybrids, which use both petrol and electricity. How will that work? Is it going to be a double whammy of taxation? I too drive a hybrid vehicle.

[Lord Stockwood (Lab)]

I thank the noble and right reverend Lord for declaring his interest. I believe that hybrid vehicles are going to be taxed at half the rate, which is 1.5p a mile, as opposed to 3p a mile.