Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential effect of changes to vehicle excise duty from April 2017 on the rate of early scrappage of private cars.
No such assessment has been made. The Chancellor of the Exchequer considers all aspects of taxation as part of the Budget process.
Cars first registered from 1 April 2017 onwards will pay a first year rate that varies by carbon emissions, followed by a flat standard rate of £140, except zero emission cars, which continue to pay nothing. Cars worth over £40,000 will pay a £310 supplement for the first five years of the standard rate, irrespective of whether they are conventionally fuelled, hybrid or electric cars.