Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of the proposed Electric Vehicle Excise Duty on new electric vehicle sales.

In its November 2025 Economic and Fiscal Outlook, the Office for Budget Responsibility (OBR) assessed that the combined impact of eVED and related Budget measures would reduce EV sales by around 120,000 between financial years 2025 to 2026 and 2030 to 2031. This represents only 2% of total anticipated EV sales during that period.

Overall around 80 per cent of eVED revenue from the first three years of the tax will be reinvested to extend support for EVs and the automotive manufacturing industry.