Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an estimate of the cost to the public purse for financial year 2022-23 of postponing for 12 months the inflation-linked increases in Vehicle Excise Duty that took effect 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 Retail Price Index 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.