Government Rejects Calls for Vehicle Tax Reduction on Older Cars
HM Treasury has formally responded to growing demands for Vehicle Excise Duty (VED) cuts targeting cars manufactured between 1987 and 2006. A parliamentary petition advocating for these changes has gathered significant momentum, amassing an impressive 39,915 signatures from concerned motorists across the United Kingdom.
Petition Details and Environmental Arguments
The petition specifically requests a 50% VED reduction for vehicles aged between 20 and 39 years, which would encompass all cars produced from 1987 through 2006. Supporters argue that current tax rates force functional, well-maintained vehicles to be scrapped prematurely, contributing to what they describe as a "disposable" car culture.
Proponents emphasize environmental benefits, stating that keeping existing cars on the road preserves embedded carbon and represents a greener alternative to manufacturing new vehicles. They contend that maintaining functional 20-year-old automobiles supports the circular economy and protects UK automotive heritage while reducing carbon debt associated with new car production.
The petition needs to reach 100,000 signatures to trigger a potential debate in Parliament, meaning it currently requires approximately 60,000 additional supporters to reach that threshold.
Official Treasury Response
In their official statement, HM Treasury declared: "The Government has no plans to reduce Vehicle Excise Duty liabilities for vehicles aged 20 to 39 years. The Government keeps all taxes under review and the Chancellor makes decisions at fiscal events."
The Treasury elaborated on current VED policies, explaining that Vehicle Excise Duty functions as a tax on vehicles used or kept on public roads, with rates calculated according to multiple factors including date of first registration, weight, and CO2 emissions.
Existing Classic Car Exemptions
The response highlighted existing provisions for older vehicles, noting that since Budget 2014, the government has implemented a rolling 40-year exemption from VED for classic cars. Currently, vehicles constructed before January 1, 1985, enjoy complete VED exemption.
This exemption will expand on April 1, 2026, when vehicles built before January 1, 1986, will also become exempt from VED payments. The Treasury emphasized that while the law doesn't specifically define what constitutes a historic or classic vehicle for registration purposes, the government established 40 years as a fair cutoff point to distinguish classic cars from older vehicles.
The statement concluded by reiterating that while there are no current plans to reduce VED for cars aged 20 to 39 years, the government maintains its policy of keeping all taxes under regular review, with final decisions on tax policy reserved for fiscal events presided over by the Chancellor.
