Rishi Sunak could be under ‘pressure’ to introduce major new car tax changes

Rishi Sunak could be under ‘pressure’ to introduce major new car tax changes

09/21/2021

Martin Lewis gives money-saving advice on VED car tax

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Vehicle services experts at Venson Automotive Solutions said new rules which would see electric cars paying road taxes similarly to petrol and diesel cars may not be too far off. Simon Staton, Client Management Director of Venson Automotive Solutions said there was an “understanding by the public” that electric car tax fees would soon be “necessary”.

The comments come after a survey from Venson found the vast majority now supported changes to help pay back loss of fuel duty charges.

He said: “Whilst it’s not anticipated that plans for a new EV tax will be revealed by the Chancellor in his October Budget, there is pressure on him to outline a 10-year trajectory to establish a financially viable means to achieving zero emissions in the UK.

“However, our survey findings confirm an understanding by the public that some sort of EV tax or related user charges will be necessary.

“[This] should offer Government assurances that people are mentally preparing to make the switch, if they haven’t done so already.

“A favourable tax regime, together with a raft of new models and significant growth in the charging network, will play a vital part in accelerating our journey along the road to zero.”

Venson’s survey of 300 motorists found 87 percent agree a financial solution was needed to recoup lost income.

It is expected around £40billion will be lost as drivers stop paying traditional Vehicle Excise Duty (VED) and fuel duty charges.

The most popular solution from those surveyed was the introduction of a new Electric Vehicle tax.

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This was backed by 38 percent of those polled and made it more variable than the expected road pricing plans.

Just 22 percent of those polled by Venson said they would want to see a pay-per-mile system introduced.

Instead, 32 percent of respondents preferred to see the end of free public EV charging stations.

A further 31 percent also backed a new ‘Road Miles’ system which would see charges incurred by plug-in drivers who incur high mileage.

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