Overview

This bill mandates a public consultation on two proposals: a trading scheme obligating vehicle manufacturers to increase electric vehicle sales to 100% by July 1, 2030, and a new road usage duty based on mileage and vehicle weight, aimed at reducing carbon emissions from transport. The bill also updates the Vehicle Excise and Registration Act 1994 to ensure graduated duty rates apply to modified vehicles.

Description

This bill initiates a public consultation process to explore two key policy changes:

Electric Vehicle Trading Scheme

This scheme would require vehicle manufacturers to progressively increase the percentage of electric light passenger vehicles they sell in the UK each year, with a target of 100% by July 1, 2030.

Road Usage Duty

This would introduce a new excise duty on vehicles based on both the distance travelled annually and the weight of the vehicle. The duty would increase with both higher mileage and heavier vehicle weight.

Modified Vehicle Duty

The bill amends the Vehicle Excise and Registration Act 1994 to ensure that changes to a vehicle's CO2 emissions after its initial registration will be considered when calculating its duty.

The consultation will involve vehicle manufacturers, environmental groups, consumer groups, relevant public bodies, and other relevant stakeholders. A report summarizing the consultation's results and recommendations for implementing the trading scheme and road usage duty will be presented to Parliament.

Government Spending

The bill itself does not directly allocate any government spending. However, the implementation of the proposed trading scheme and road usage duty could lead to both increased spending (e.g., on monitoring and enforcement) and potentially increased government revenue (from the new road usage duty).

Groups Affected

• Vehicle Manufacturers: Potentially significant impact through obligations to increase electric vehicle sales. This could involve substantial investment in electric vehicle production and potentially financial penalties for non-compliance.
• Consumers: Could face increased vehicle costs (through higher electric vehicle prices or the road usage duty) and changes in vehicle choice.
• Environmental Groups: Potentially positive impact through reduced transport emissions, dependent on successful implementation of the proposed schemes.
• Road Users: Will be directly affected by the road usage duty, the cost of which will vary depending on mileage and vehicle weight.

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