BVRLA Responds To CEBR Future Of Motoring Taxation Report

The BVRLA has welcomed the Cebr's timely and sensible report into the future of motoring taxation.

Commenting on the report, which was commissioned by the SMMT, BVRLA Chief Executive Gerry Keaney said:

"The Cebr rightly recognises the huge success of the government's incentive-based taxation regime, which has helped bring UK CO2 emissions below EU 2015 targets.

The fleet sector has led this move towards zero emissions – with the average new lease car registered in 2014 emitting just 116.8g/km CO2, which is 7% less than the average for all new registrations in the same period.

As car CO2 emissions fall, the government needs to act to protect its tax revenues and we support the Cebr's call for a gradual, well-signposted change to VED bandings. We also agree with its suggestion that sustaining longer-term revenues may need to rely on some form of national road pricing network. We would insist that any road pricing system must be introduced on a tax-neutral basis.

Air quality is a major issue for many urban areas, and the Cebr is right to say that this is best addressed by local initiatives such as congestion or low emission zones.

The van market is the fastest growing sector of UK road users and it is about time that the LCV VED regime included some kind of incentive that encourages operators to choose cleaner vehicles. As the Cebr says in its report, this needs to be given careful consideration to prevent any unintended consequences for particular sectors of the van market.

The new government will undoubtedly want to review its motoring tax strategy and we would welcome the opportunity to discuss all these issues with the Treasury."

Toby Poston
Director of Communications and External Relations
BVRLA
Direct Tel: 01494 545700 | M: 07979 756533
email: toby@bvrla.co.uk | www.bvrla.co.uk

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