New system for VED payment will reduce incentives to choose cleaner vehicles
The Energy Savings Trust responds to the Chancellors VED budget announcement.
Philip Sellwood, Chief Executive of Energy Saving Trust, said:
“Energy Saving Trust is supportive of zero emission vehicles receiving a zero charge but these vehicles are not suitable for all car owners and business needs. Replacing the current emission-based bands with a flat rate will reduce the incentive for other customers to choose cleaner vehicles, including plug-in hybrids, which will reduce their uptake.
“We understand the current system needs to be adjusted to allow for the large numbers of low emission vehicles, but we believe the system should continue to be graduated to favour lower emission vehicles where a zero emission vehicle is not viable. We would also welcome clarification on whether zero emission vehicles that cost more that £40,000 would qualify for the zero rate or the premium rate.”
