Motor Vehicles: Excise Duties

(asked on 28th August 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of moving from vehicle excise duty to road-user charging; and if he will make a statement.


Answered by
Kemi Badenoch Portrait
Kemi Badenoch
Leader of HM Official Opposition
This question was answered on 4th September 2020

Vehicle Excise Duty (VED) is a tax on vehicle ownership, which raises around £6 billion per annum. Revenue raised through English VED is being reinvested into the road network between 2020-2025 to fund road enhancement projects.

Motorists pay fuel duty on the petrol or diesel they purchase so those who complete significant mileage currently pay more in fuel duty than those who drive fewer miles.

All taxes remain under review – changes are considered by the Chancellor and announced at fiscal events.

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