Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Answer of 25 April 2022 to Question 153825 on Motor Vehicles: Excise Duties, what the estimated nominal revenue yield is in 2022-23 from raising Vehicle Excise Duty rates for cars, vans and motorcycles in line with inflation from 1 April 2022.

The Chancellor confirmed at Autumn Budget 2021 that, in 2022-23, Vehicle Excise Duty (VED) rates for cars, vans and motorcycles would increase in line with RPI only.

Since 2010, VED rates have increased in line with inflation, meaning that VED liabilities have not increased in real terms.

Raising VED in line with inflation helps to maintain the sustainability of the public finances over the longer term.

The Treasury does not publish disaggregated figures on the impact of increasing VED rates in line with inflation.