Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits in aligning the taxation of plug-in hybrid electric vehicles with their real-world emissions.

New emission standards are being introduced in the UK, which reflect the higher real-world emissions of Plug in Hybrid Vehicles (PHEVs).These new standards will be reflected within Vehicle Excise Duty (VED) and Benefit in Kind systems.

In addition, from 1 April 2025 the VED first year rates have changed to support the take-up of electric vehicles, with higher rates for higher emitting hybrid and petrol/diesel vehicles, and the lowest rate for zero emission cars being frozen until 2029/30.

The emissions level of hybrids varies and while they are generally cleaner than petrol/diesel cars, their emission levels are higher than electric vehicles (EVs). It is therefore right to focus the most generous VED incentives towards zero emission vehicles (ZEV) as the ZEV transition continues.