Source · Select Committees · Transport Committee
Recommendation 2
2
Paragraph: 8
The Government must start an honest conversation with the public on the funding implications for...
Recommendation
The Government must start an honest conversation with the public on the funding implications for road development and maintenance and for other essential public services of decreased revenue from vehicle excise duty and fuel duty.
Paragraph Reference:
8
Government Response
Acknowledged
HM Government
Acknowledged
As the Government’s Net Zero Strategy set out, as we transition to net zero, the government will need to ensure that the tax system encourages the uptake of EVs, and revenue from motoring taxes will need to keep pace with this change, while remaining affordable for consumers. This is so we can continue to fund the infrastructure and first-class public services that people across the UK expect, and avoid a rise in congestion, with those able to drive electric vehicles having very low running costs compared to other vehicles and public transport. That would affect everyone on the road and those using public transport. Our tax system has already begun to adapt to this transition. As I set out at Autumn Statement 2022, it’s right that all motorists start to pay a fairer tax contribution. That’s why, from 2025, electric cars, vans and motorcycles will pay Vehicle Excise Duty in the same way as petrol and diesel vehicles.