Autocar RSS Feed: Autumn Budget: diesel tax hike confirmed

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Autumn Budget: diesel tax hike confirmed
Nov 22nd 2017, 13:04

Autumn Budget: diesel tax hike confirmed Diesel tax and new autonomous car legislation announced as top motoring-related changes

The UK Government has introduced a diesel car tax hike in its Autumn Budget as part of plans to reduce the number of them on Britain's roads.

Chancellor Philip Hammond confirmed that diesel vehicles that don't conform the "next-generation" emissions standard will be pushed up by a tax band.

He also said that company car tax for the same vehicles will increase by 1%.

Opinion: The government is wrong to penalise diesel drivers

Hammond neglected to explain whether 'next-generation' meant the current Euro6 emission standard. At this stage, it is presumed that this is what he meant, but Autocar is seeking clarification from the government.

The new tax hike, which Hammond said applies exclusively to cars so leaves van and lorry drivers unaffected, forms part of the government's plans to fight Britain's growing air quality problem, of which it labels diesel pollution a major contributor.

Hammond said that the money raised from the raised diesel taxes would be used to fund air quality improving projects.

Leader of the Labour Party Jeremy Corbyn said the tax hike and other Autumn Budget adjustments will hurt "ordinary people".

"The reality test of this budget will be how it affects ordinary people's lives," he said.

Insight: Is it time to give up on the diesel engine?

Electric cars

Alongside his clampdown on diesel, Hammond announced a £400 million investment into the UK's electric car charging infrastructure in a bid to attract motorists to electrified vehicles. He confirmed £100m has been allocated for plug-in car grants.

"People who charge their electric vehicles at work will not face a benefit in kind tax," added Hammond.

"Our future vehicles will be driverless, but they'll be electric first. That's a change that needs to come as soon as possible," he said.

The truth about the diesel engine

Autonomous cars

The UK Government has also announced £500 million worth of investment into the wider tech industry and a new regulator's pioneer fund to help fast track regulation for new technology.

This has freed up £40m for research and development into electric and autonomous cars.

Diesels attacked

Uncertainty surrounding the impending budget has already had an impact on diesel registrations in Britain, with diesel sales dropping by 29.9% in October. Experts claim that motorists have held off on buying new models until the budget's true impact is revealed. There are currently around 37 million diesel vehicles on Britain's roads.

Despite growing pressure on diesel, particularly following the Volkswagen Dieselgate scandal, independent research carried out by Autocar sister title What Car? has shown that while most petrol vehicles do produce less NOx and particulates than diesel equivalents, some of the market's newest diesels can actually be cleaner than their petrol alternatives.

What Car? tests showed that the new BMW 520d emits just 0.035g of NOx per kilometre, identical to the amount produced by the Volkswagen Passat GTE, a hybrid-petrol model. The tests showed that CO2 output for the 520d is 0.038g/km, while the Passat emits 0.174g/km – nearly five times the amount.

Experts therefore associate the UK's growing automotive air pollution problem with older diesel vehicles, rather than the latest Euro 6 models. Older diesels can lack the particulate filters of new cars and thus produce significantly higher levels of NOx and particulates.

While the UK government has focused its efforts for air pollution on diesel vehicles, some local authorities have chosen to tackle high-polluting vehicles of any fuel type. London last month introduced the T-charge, which charges drivers of higher-polluting vehicles £10 to pass through certain zones, while Oxford City Council wants to go a step further with plans to ban petrol and diesel cars from its inner city streets from 2020.

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