Fuels: Excise Duties
The question
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the zero emissions vehicle mandate on fuel duty revenues between (a) 2025 and 2030, (b) 2030 and 2040 and (c) 2040 and 2050.
Answered by James Murray
The Zero Emission Vehicle (ZEV) Mandate requires 80% of all new cars to be zero emission by 2030. There will be no sales of new pure combustion engine cars from 2030 under the Government's plans, and more details on specific 2030-35 requirements for both cars and vans will be set out shortly.
The shift to zero emission electric vehicles (EVs) is crucial for decarbonising the transport sector and tackling climate change, while injecting billions of pounds worth of investment into our economy and creating high skilled jobs.
As this shift progresses, fuel duty revenues will start to decline, as set out by the Office for Budget Responsibility (OBR) in their September 2024 Fiscal Risks and Sustainability report and November 2023 Economic and Fiscal Outlook. Full forecasts for fuel duty revenue over the next five years, certified by the OBR, will be published at Budget on 30 October.
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