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Auto Express
06-05-2025
- Automotive
- Auto Express
Drivers take the biggest hit on ‘environmental' taxes
In case drivers were in any doubt about where so-called 'environmental taxes' hit hardest, then new figures from the UK's official Office of National Statistics spell out just how much we're coughing up to fund government expenditure. By far the biggest contribution drivers make to the national coffers comes from fuel duty, which is the cash the government rakes in from every litre of petrol or diesel you put in your tank. In total in 2024, that number hit the £24.6 billion mark. Fuel duty has been the biggest component of energy taxes since 1997, with a similar amount raised annually by schemes such as the Climate Change Levy on energy companies, which adds costs to domestic electricity bills - also paid by many drivers, of course. Advertisement - Article continues below Energy taxes form the biggest chunk of revenues falling under the ONS 'environmental tax' umbrella, but transport taxes are also a big component. Once again, drivers take the most punishment here, with motor vehicle duty paid by UK households and businesses as 'road tax' amounting to £8.2 billion. That means tax on motor vehicles make up almost £33 billion of the £54.2 billion raised by environmental taxes in 2024. The ONS describes these taxes as 'those whose base is a physical unit, for example, a litre of petrol or a passenger flight, that has a proven negative impact on the environment. These taxes should reduce the activity related to these units and therefore reduce negative environmental impacts'. Skip advert Advertisement - Article continues below Last week former Prime Minister Tony Blair ran into trouble with the current Labour administration after saying the UK's net zero environmental policies were 'doomed to fail' and losing sway with voters. Jack Cousens, the AA's head of roads policy, responded to the latest figures by saying that 'drivers will be staggered' by the contribution they're making to environmental taxes, and that although most expect petrol and diesel car use to come with some sort of tax penalty 'the share of the tax-take will be a shock'. The AA also takes issue with the number of what it calls 'stealth taxes' on drivers levied by councils under the environmental banner. 'Environmental taxes now being levied by councils, including those that can reasonably be labelled as stealth taxes, include CO2-related residents parking permits, diesel-related residents parking permits, diesel-related public parking charges, workplace parking levies, city or town parking costs where the council has stated a CO2 justification for high fees,' says Cousens, calling for 'the huge amount of money collected by them to be accounted for, and laid bare to the public.' Our Car Tax Checker tool lets you check your tax status and renewal date in seconds. Check your VED car tax now... Find a car with the experts Ford Fiesta set to return? Icon could be reborn with a little help from Volkswagen Ford Fiesta set to return? Icon could be reborn with a little help from Volkswagen The Ford Fiesta could be coming back from the dead, and our exclusive image previews how it might look New Renault 4 2025 review: as good as the Renault 5 with the bonus of extra space New Renault 4 2025 review: as good as the Renault 5 with the bonus of extra space The new Renault 4 takes everything that's good about the Renault 5 and adds extra cabin and boot space New 2025 Kia PV5 van starts from a tempting £22,645 New 2025 Kia PV5 van starts from a tempting £22,645 All-new entry into the van market promises competitive pricing and comes with a range of up to 247 miles
The Independent
10-02-2025
- Automotive
- The Independent
Sales of used electric cars reach record market share
Sales of pure electric used cars reached a record market share last year, new figures show. Some 188,000 such vehicles changed hands in the UK in 2024, the Society of Motor Manufacturers and Traders (SMMT) said. This represented 2.5% of the total sales of 7.6 million. The used car sector's 25-month growth streak is good news for fleet renewal and for consumers benefiting from the greater choice filtering through from the new market Mike Hawes, SMMT In 2023, the market share for pure electric used cars was 1.7%, out of a total of 7.2 million. The SMMT warned that growing demand for used and new electric vehicles (EVs) 'cannot continue to be taken for granted'. It said that the decision to remove EVs' exemption from vehicle excise duty (VED) and the expensive car supplement from April 1 was 'likely to impact on the used market' as it was 'drastically increasing ownership costs' for the first six years of their use. Last year, petrol and diesel used cars took a market share of 92.1%, down from 94.3% in 2023. Record sales of second-hand EVs also demonstrates strong appetite for these cutting-edge cars at lower price points Mike Hawes, SMMT SMMT chief executive Mike Hawes said: 'The used car sector's 25-month growth streak is good news for fleet renewal and for consumers benefiting from the greater choice filtering through from the new market. 'Record sales of second-hand EVs also demonstrates strong appetite for these cutting-edge cars at lower price points. 'Ensuring ongoing growth, however, means maintaining that affordability, along with supply, which requires meaningful fiscal incentives to stimulate consumer demand for new EVs and removing the VED expensive car tax disincentive that risks dragging down used EV affordability for years to come.' The Ford Fiesta was the UK's best-selling used car last year, with 306,000 transactions. This was followed by the Vauxhall Corsa (253,000 transactions) and the Volkswagen Golf (231,000). With a year of elections, policy changes and economic uncertainty, it's unsurprising that price-conscious consumers turned to the used car market for more affordable motoring options James Hosking, AA Cars James Wilson, chief operating officer of used car marketplace said: 'It's promising to see another year of growth for the used car market. 'With a year of elections, policy changes and economic uncertainty, it's unsurprising that price-conscious consumers turned to the used car market for more affordable motoring options.' James Hosking, managing director of AA Cars, said: 'The used car market is on a roll, celebrating its eighth consecutive quarter of growth and record demand for pre-loved EVs. 'With more electric and hybrid vehicles entering the second-hand market, buyers now have a wider selection than ever, helping to drive demand. 'This surge underscores a key consumer trend – affordability is king. With household budgets under strain, many are opting for nearly new models over splashing out on a brand new car.'
