Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the effect of changes to Vehicle Excise Duty and the £40,000 list price premium on the second-hand car market for (a) zero- or low-emission cars and (b) petrol or diesel cars.

VED is designed to incentivise the uptake of cars with low carbon dioxide emissions. Zero-emission cars pay neither first year VED, nor the standard rate in subsequent years.

The ‘expensive car supplement’ is designed to ensure people who can afford the most expensive cars pay more than the standard rate imposed on other drivers.

All taxes remain under review. Any changes will be considered by the Chancellor and announced at fiscal events.