PARLIAMENTARY WRITTEN QUESTION
Motor Vehicles: Excise Duties (15 March 2018)

To ask Mr Chancellor of the Exchequer, if he will make an assessment of the higher charges applied to rates of vehicle tax when paid biannually as opposed to annually on the ability of people on lower incomes to afford that tax.

Asked by:
Chris Elmore (Labour)

It is a long-standing feature of the Vehicle Excise Duty (VED) system that rates for biannual and monthly payments are higher than annual VED.

The Driver and Vehicle Licensing Agency (DVLA) are currently engaged in a programme of large scale technical change to move their services on to new technical platforms. As part of this work, HM Treasury and the DVLA are committed to reviewing the current administration of vehicle tax, including these surcharges.

In the meantime, DVLA does offer a monthly direct debit, which also helps affordability for people who are cash-constrained.

Answered by:
Robert Jenrick (Reform UK)
22 March 2018