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Vehicle Excise Duty: Motorhomes

Treasury – in the House of Commons on 7th January 2020.

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Photo of Desmond Swayne Desmond Swayne Conservative, New Forest West

If he will make it his policy to reduce the level of vehicle excise duty for motorhomes.

Photo of Simon Clarke Simon Clarke The Exchequer Secretary

The Government introduced a graduated system of vehicle excise duty to encourage the uptake of vehicles with lower carbon dioxide emissions and to help meet our legally binding climate change targets. I have held productive talks with representatives of the industry and my hon. Friend Sir David Amess to discuss this matter, and I am sensitive to their concerns. As with all taxes, we keep VED under review, and any announcements are for future fiscal events.

Photo of Desmond Swayne Desmond Swayne Conservative, New Forest West

When we escape the clutches of EU regulation 2018/1832, will the Minister restore the status quo ante as at September last year?

Photo of Simon Clarke Simon Clarke The Exchequer Secretary

My right hon. Friend stands up with a positively lengthy question. As he knows, I share his enthusiasm for escaping certain EU regulations when we leave the EU on 31 January. We are, however, convinced of the need to incentivise the reductions in our transport emissions that I have referred to, which represent a third of the UK’s total CO2 output.

Photo of Sammy Wilson Sammy Wilson Shadow DUP Spokesperson (Treasury), Shadow DUP Spokesperson (Work and Pensions), Shadow DUP Spokesperson (Brexit)

Does the Minister think that this green tax, which has increased vehicle duty by 1,000% for many motorhomes—which are used, on average, for 31 days per year and do about 2,000 miles per year—is fair, and will he review it?

Photo of Simon Clarke Simon Clarke The Exchequer Secretary

The figure of 1,000% is somewhat misleading. Only motorhomes with the very highest emissions would fall into that category, and the extra VED applies only in the first year. But of course we keep all taxes under review. I am sensitive to the concerns of the industry; clearly, a significant number of jobs are supported by it. As always, we keep these things under a watching brief.