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Vehicle Excise Duty: Motorhomes

Volume 669: debated on Tuesday 7 January 2020

The Government introduced a graduated system of vehicle excise duty to encourage the uptake of vehicles with lower carbon dioxide emissions and to help to meet our legally binding climate change targets. I have held productive talks with representatives of the industry and my hon. Friend the Member for Southend West (Sir David Amess) to discuss this matter, and I am sensitive to their concerns. As with all taxes, we keep VED under review, and any announcements are for future fiscal events.

When we escape the clutches of EU regulation 2018/1832, will the Minister restore the status quo ante as at September last year?

My right hon. Friend stands up with a positively lengthy question. As he knows, I share his enthusiasm for escaping certain EU regulations when we leave the EU on 31 January. We are, however, convinced of the need to incentivise the reductions in our transport emissions that I have referred to, which represent a third of the UK’s total CO2 output.

Does the Minister think that this green tax, which has increased vehicle duty by 1,000% for many motorhomes—which are used, on average, for 31 days per year and do about 2,000 miles per year—is fair, and will he review it?

The figure of 1,000% is somewhat misleading. Only motorhomes with the very highest emissions would fall into that category, and the extra VED applies only in the first year. But of course we keep all taxes under review. I am sensitive to the concerns of the industry; clearly, a significant number of jobs are supported by it. As always, we keep these things under a watching brief.