Overview

This bill mandates a public consultation on two key proposals: a trading scheme obligating vehicle manufacturers to increase electric vehicle sales, aiming for 100% by July 1st, 2030, and a new road usage duty based on mileage and vehicle weight, designed to lower carbon emissions from transport. It also updates regulations for modified vehicles' excise duty.

Description

The bill's core is a public consultation on two significant policy changes.

Trading Scheme for Electric Vehicles

This would require vehicle manufacturers to progressively increase the proportion of electric light passenger vehicles (cars with up to 8 seats besides the driver's) they sell in the UK, eventually reaching 100% by July 1st, 2030.

Road Usage Duty

This proposes a new excise duty based on the annual mileage and weight of vehicles. The more miles driven and the heavier the vehicle, the higher the duty.

Modified Vehicle Duty

The bill amends the Vehicle Excise and Registration Act 1994 to ensure that changes to a vehicle's status (e.g., modifications affecting CO2 emissions) after initial registration are correctly reflected in its duty calculation.

The consultation, to be completed within a year of the bill passing, will involve vehicle manufacturers, environmental and consumer groups, relevant public bodies and others deemed appropriate by the Secretary of State. A report detailing the consultation's findings and recommendations will then be presented to Parliament.

Government Spending

The bill itself doesn't directly allocate funds. However, the implementation of the proposed trading scheme and road usage duty could affect government revenue. The road usage duty is expected to generate additional revenue, while the trading scheme's impact on government spending is uncertain and will depend on the outcome of the consultation.

Groups Affected

• Vehicle Manufacturers: Potentially significant changes to production and sales strategies, potentially requiring large investments.
• Consumers: May face higher costs due to the increased price of electric vehicles and the road usage duty.
• Environmental Groups: The bill could significantly aid in reducing carbon emissions if the proposals are implemented, impacting their advocacy efforts.
• Public Bodies: May need to adapt their policies and infrastructure to support the shift towards electric vehicles and the new road usage duty.

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