Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate her Department has made of the average annual vehicle downtime and associated productivity loss per fleet vehicle arising from the mileage estimation, reporting and reconciliation requirements of the proposed eVED framework; and what assessment she has made of the cumulative financial impact on the vehicle rental and leasing sector.

The proposed approach to electronic Vehicle Excise Duty (eVED) is designed to minimise administrative burdens by integrating mileage estimation, reporting and payment into the existing VED system, with most users expected to interact with the system once per year.

Mileage data from cars is currently collected at annual MOTs. The Government intends to use this data to ensure that user-supplied mileage is consistent and up to date. If a car is already subject to an MOT, there will typically be no additional steps for checks.

Cars under three years old are not currently required to have anannual MOT. In the eVED consultation published at Budget 2025, the Government set out the intention for these cars to attend an additional mileage check at an accredited provider around their first and second anniversary at no cost to the motorist, but welcomed views on whether these additional checks should be required.

The Government also recognised that fleets, rental and leasing businesses may require specific arrangements and sought evidence on the impact on the sector. DVLA are considering options to minimise the administrative burdens of mileage estimation and payments for these businesses, similar to VED, where bulk licensing options are available.

The Government is continuing to assess consultation responses, including those relating to the administration of eVED. In line with usual practice, the Government will publish an assessment of the administrative impact of eVED in a Tax Information and Impact Note (TIIN) alongside the relevant legislation.