Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of introducing a compensation scheme for people for whom the resale value of their electric vehicle was affected by changes to the level of taxation for electric vehicles after 1 April 2025.

There are no current plans to introduce a compensation scheme of this design. Vehicle Excise Duty (VED) is a tax on vehicles used or kept on public roads and is designed to ensure all road users pay a fair contribution. Revenue from motoring taxes helps to fund vital public services and infrastructure, including investment in roads and transport.

The Government keeps all taxes under review as part of the policy making process.