From John Glen MP
Thank you for contacting me regarding VED in the recent budget. In terms of the changes planned to VED in budget, please see the following extract from the Budget itself which explains the measures we’re making in this budget regarding VED.
Vehicle Excise Duty (VED): Rates –
The government will uprate VED rates for cars, vans and motorcycles in line with RPI from 1 April 2020. To support the haulage sector, the government will freeze HGV VED and the HGV Road User Levy for 2020-21. (53)
VED: Zero emission vehicles (ZEVs) –
From 1 April 2020, the government will exempt all ZEVs registered until 31 March 2025 from the VED ‘expensive car’ supplement. The measure will incentivise the uptake of ZEVs to support the phasing out of petrol and diesel vehicles. (44)
VED: Motorhomes –
From 12 March 2020, the government will reduce annual VED liabilities for most new motorhomes to a flat rate of £265, which will rise to £270 for 2020-21, as motorhome manufacturers and dealers will not be required to provide a CO2 emissions figure when registering new motorhomes with the Driver and Vehicle Licensing Agency. From 1 April 2021, the government will align the VED treatment of new motorhomes and vans. (18)
Call for evidence on VED –
The government is publishing a call for evidence which will include how VED can be used to support the take-up of zero and ultra-low emission vehicles and reduce overall emissions from road vehicles.
There is speculation in the press about one of many proposals which have been suggested following the call for evidence. This is not government policy as things stand and the government is calling for evidence in this particular area, this is simply a paper which details one possible proposal.
Yes, Glen, not Glenn... John Glen is Economic Secretary to the Treasury and City Minister, where he has responsibility for banking and financial services policy. He the sixth-most senior ministerial post in the UK Treasury, after the First Lord of the Treasury, the Chancellor of the Exchequer, the Chief Secretary to the Treasury, the Paymaster-General and the Financial Secretary to the Treasury. It is not a cabinet-level post. Based on the fate of past incumbents, it is a position held by people destined for high office. So he knows people. He is also a good local MP, always replies to my e-mails.
