Vehicle Taxation

Thank you for contacting be about vehicle taxation.

I am aware of speculation around the introduction of a 'pay as you drive' 'road tax'. It is, of course, already the case that motorists pay fuel duty on the petrol or diesel they purchase so those who complete significant mileage currently pay more in fuel duty than those who drive fewer miles.

The Campaign for Better Transport's report, 'Pay-as-you-drive: The British public’s views on vehicle taxation reform', makes an important contribution to the debate on vehicle taxation and contains interesting data on public opinion regarding the question of road pricing. 

Any decision to modify our tax regime is a matter for the Treasury and careful consideration will be given to any potential reforms in future budgets. I understand that the Government keeps all taxes under review and I shall be following the developments on this issue closely.

Thank you again for taking the time to contact me.