1: Further tax increases on high emitting, older diesel cars|
Excise Duty changes, announced at last years Budget, come into effect on
the 1st April 2017, which will stop all diesel cars from being exempt from tax,
leaving electric and hydrogen cars as the only tax free options when buying a
new car. But it seems likely the Chancellor can and will go further than this
to try to stop people from thinking of buying diesel vehicles. In
line with the recent T Charge measures by London, the Chancellor could
increase road tax on high emitting or older diesel cars. Another measure could
be the outright ban of the removal of DPF filters from diesel cars that are 7
years old or less.
to happen given failure to meet pollution targets. It will discourage drivers
from buying diesel vehicles in future.
2: Duty on fuel frozen for the 8th year in a row
As mentioned previously,
we are unable to find a point in recent history when fuel duty in the UK has decreased.
The UK government earns the highest amount of revenue from fuel duty than anywhere
else in the world. It seems highly unlikely that fuel duty on diesel will change
in any way. Increasing fuel duty would be seen a massive kick in the teeth to
the motorist, particularly at a time of high inflation and stagnant earnings.
highly likely given recent fuel price increases and inflationary pressures. It
does not penalize drivers further, when the cost of fuel is increasing.
3: A National scrappage scheme for high emitting, older diesel cars of £3,500
Khan has called the government to introduce a scrappage scheme for high emitting,
diesel cars in London, this follows similar measures in other countries to try
to get the biggest polluting cars off the road forever. The Mayors argument
is that by reducing the deaths and lives affected by pollution each year the net
cost is lower from money saved by the NHS and other services. However,
it seems unlikely that they will make this change given current budget constraints
in public spending and commitments made to HS2, Nuclear Energy and Trident.
less likely, massive investment to achieve by a government that doesnt have
money spare. It would be a massive statement of intent and put the UK at front
of the world for tackling pollution but it wouldnt impact HGVs, Public good
vehicles and factories, the major polluters alongside cars.
4: Further incentives to buy zero emissions vehicles
Electric and hydrogen
cars already benefit from zero road tax and zero congestion charges; but the Government
could go even further to try to make buying a zero emission car more attractive
than a high emission car. The Government could incentivize with a help to buy
scheme across electric and hydrogen cars that would enable users to buy new or
used cars at a lower price, or support with the purchase of second hand electric
cars that are currently sat redundant.
the least likely of the measures to be announced but may happen within the next
few years. It encourages purchase of zero emission vehicles and may stimulate
growth. However a tiny proportion of the population will benefit from the measure
as petrol/diesel still more attractive".