Government advisers call for car tax increase and combustion engine ban by 2032

UK car tax should be increased and a ban on the sale of new petrol and diesel cars accelerated in order to tackle climate change, according to government advisers.

In its latest report the Committee on Climate Change (CCC) argues that such measures are needed to drive the adoption of low-emissions vehicles and help the UK meet its target of carbon neutrality by 2050.

The CCC says that with fuel prices driven down by the coronavirus pandemic, now is the right time to reform Vehicle Excise Duty (VED) to encourage a move away from traditionally fuelled cars. It has urged the Treasury to “provide stronger incentives to purchase zero emission vehicles and halt the shift towards larger, higher emitting cars”. As zero-emissions cars already pay no VED after the first year, this hints at raising taxes for other vehicles.

Its report says the coronavirus pandemic could be a defining moment on the route to carbon neutrality and  notes: “Greater use of carbon taxes can support the public finances and strengthen incentives to reduce emissions. They are particularly attractive when global oil prices, and therefore consumers' energy costs, are low, as they are now.”

Changes to emissions testing and VED rules earlier this year saw a sharp rise in VED for buyers of some large heavily polluting models.

Petrol and diesel ban

The CCC report also calls on the proposed ban on traditionally fuelled vehicles to be brought forward by another three years.