15
We pointed out that the ban on new petrol and diesel cars from 2030 is...
Conclusion
We pointed out that the ban on new petrol and diesel cars from 2030 is likely to have an impact on both the type of vehicles and volume of fuel purchased well before then.27 Under the lead of the Department for Transport, the government is using a range of levers to incentivise consumers to move to electric vehicles now. The levers include: the plug-in car grant scheme; support for home, destination and on route charging; lower rates of Vehicle Excise Duty and Company Car Tax for cleaner vehicles; and raising consumer awareness. The cross-government Office for Zero Emission Vehicles, which ultimately reports to the Secretary of State for Transport, spent a total of £1.1 billion between April 2010 and March 2020 on funding the plug-in car grant, charging infrastructure schemes and other schemes. The government’s intention to stop the sale of new petrol and diesel cars by 2030 will require a rapid growth in the number of zero-emission cars over the next decade.28
Government Response
Not Addressed
Government Response
Not Addressed
HM Government
Not Addressed
2.3 The interim Net Zero Review report in December 2020 highlighted that structural changes in the economy related to net zero will have fiscal implications. Much of the revenue from fossil fuel-based taxes is likely to be eroded during the transition to a net zero economy, the most significant of which are motoring taxes such as fuel duty. As set out by the Prime Minister in the Ten Point Plan for a Green Industrial Revolution, whilst the UK moves forward with the transition away from petrol and diesel cars and vans, the government will need to ensure that revenue from motoring taxes keeps pace with this change, so that the government 18 can continue to fund the first-class public services and infrastructure that people and families across the UK expect. The government will ensure it plans for sufficiently early and broad consultation with different parts of society.
Source
Committee
Public Accounts Committee
Inquiry
Environmental tax measures
Report
Fifty-Fifth Report - Environmental tax measures
28 Apr 2021
HC 937
Addressee Bodies
HM Treasury
Timeline
Recommendation age
5.1 yrs
Report published
28 Apr 2021