In June 2020, the Committee on Climate Change (CCC) recommended reform of VED to begin from 2021 with a focus on halting the shift towards high-emitting cars.

The report said: “Company car tax reforms, alongside purchase grants and preferential tax treatment, are providing a strong consumer incentive to purchase low-carbon vehicles.

“More could be done with Vehicle Excise Duty to strengthen incentives for all buyers and to discourage the most polluting vehicle purchases.”

Pay per mile

Back in November, it was reported the Treasury had presented a paper on a new road pricing pay per mile scheme to the Chancellor.


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