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environmentally backwards changes to VED?

(9 posts)

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  1. unhurt
    Member

    Via a friend on FB: "Here's a question Facebookers - who else was aware of the changes to VED (road tax) that will affect new cars from the 1st April? Basically they're tearing up the whole 'the more the car pollutes the more you pay' with a system that will cost every single band the same and the only exception will be cars that produce zero emissions or cars over £40,000 (which will end up costing you a whopping £450 vs £140 for five years and then it's back to £140.)

    So as of the 1st April you're as well getting the most powerful and polluting engined car you can for £39,999.99 as you'll be paying the same VED as a low pollution hybrid! Doesn't seem very environmentally focused to me..."

    Only applies to new cars - but as he commented later, "Yep - apparently far too many people were buying low emission cars and the VED take was dropping."

    SArgh.

    Is this right? If so, regressive taxation agogo...

    Posted 8 years ago #

  2. Frenchy
    Member

    Yes, it's right (generally, anyway, I'm not up on the finer details).

    It does only apply in England, though.

    Posted 8 years ago #

  3. ih
    Member

    Didn't George Osborne in one of his later budgets, reintroduce the actual "Road Tax" in that some of the tax was ring fenced for roads? I can't remember the details unfortunately.

    Posted 8 years ago #

  4. crowriver
    Member

    "cars over £40,000"

    If the pound continues its downward plummet against other major currencies, in a few years EVERY new car sold in the UK will cost over £40,000. Mind you a loaf of bread will be £20 and a pint of milk £10.

    Posted 8 years ago #

  5. Snowy
    Member

    @Frenchy, I believe it applies across the whole UK.

    I think the bit that only applies in England is that Osbourne undertook to ring-fence some of the raised tax for 'roads' (i.e. benefiting motorcars) in England; devolved administrations are to decide how they wish to spend their grant from UKGOV (staving off total collapse of the NHS is probably a higher priority...)

    Anyway, it's a completely regressive move. Plus, that first year, the only year that still vaguely nods in the direction of environmental impact, still solely focuses on CO2 as the defining attribute, and ignores all the NOx and particulate information that has come to light over the last few years as being damaging to health and environment.

    Sadly most of the motorists in my office, while agreeing it seemed stupid, were struggling to hide the smiles on their faces.

    Posted 8 years ago #

  6. Frenchy
    Member

    Thanks for the information, Snowy. I was struggling to reconcile my understanding that this only applied in England with my understanding that VED was a reserved issue - that clears it up.

    Posted 8 years ago #

  7. Klaxon
    Member

    It removes any incentive to buy an efficient, used car. The market in 3+ litre luxury models might spring up again, limos like 6-7 year old BMW 7s always were excellent value for money in terms of interior kit and comfort as they depreciate so fast.

    Emission rated VED has been one of the most successful policies of the last decade in directly influencing consumer behaviour and car design towards efficient models, even though as it turns out the manufacturers were just defrauding their side of the bargain with rigged emission test routines.

    Posted 8 years ago #

  8. I were right about that saddle
    Member

    the manufacturers were just defrauding their side of the bargain with rigged emission test routines

    VED is linked to carbon dioxide emissions. I know that NOx emission tests were circumvented, but was unaware of an issue with carbon dioxide.

    Posted 8 years ago #

  9. neddie
    Member

    The fuel efficiency of new cars is massively overstated (meaning CO2 output is also massively understated) - by up to 40%, whereas a few years ago it was only 10%.

    There was a good graph showing this circulating the internet - I'll see if I can find it.

    Posted 8 years ago #

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