Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential impact of the projected increase in the number of electric vehicles on future revenues from Vehicle Excise Duty.

The Office for Budget Responsibility (OBR) periodically forecasts the impact of increased electric vehicles on future motoring tax revenues, including Vehicle Excise Duty, as part of its Fiscal Risks and Sustainability report.

More information can be found on the OBR’s website: https://obr.uk/frs/fiscal-risks-and-sustainability-july-2022/.

The Government set out as part of its Net Zero Strategy that revenue from motoring taxes would keep pace with the transition to electric vehicles.