Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the effectiveness of calculating motorcycle Vehicle Excise Duty on the basis of engine size.

VED for motorcycles is currently based on engine size. There are four engine size ranges, with the lowest rate applying to zero emission motorcycles and the smallest engines sized 150cc or less (currently £27). The highest rate applies to engines sized 600cc and above (currently £125). This compares with the standard rate for cars registered on or after 1 April 2017 which is currently £200. Motorcycles also do not pay different rates in the first year of purchase, unlike cars where first year rates vary from £10 to £5,690 for the most polluting vehicles.

There are no current plans to review how Vehicle Excise Duty (VED) is calculated for all road vehicles including motorcycles. The Government annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy. The Chancellor makes decisions on tax policy at fiscal events in the context of the public finances, and in doing so considers a range of stakeholder views.