Latest news with #VehicleExciseDuty
The Independent
a day ago
- Automotive
- The Independent
UK electric car sales jumped by over 25 per cent in May
Latest car registration figures from SMMT (Society of Motor Manufacturers and Traders) show the popularity of electric cars is rising fast but is still falling short of government targets. Nearly 33,000 new EVs hit the roads in May, up 25.8 per cent on 2024 figures. That means electric cars account for 20.9 per cent of all new car sales so far in 2025, some way off the government's ZEV Mandate target of 28 per cent. Car makers that fail to hit the 28 per cent figure face fines or will have to find ways to use credits that can include buying them from other car makers. Plug-in hybrid cars are also growing in popularity with registrations up 50.8 per cent on last May with a total of 17,898 PHEVs sold. And although petrol models still account for the vast majority of new car sales, taking 49 per cent of all car sales so far in 2025, the figure for May shows a drop of 12.5 per cent year-on-year. Overall, the car market returned to growth in May, up by 1.6 per cent and the best May for car sales since 2021. However, SMMT says that the fleet and business sector was responsible for the bulk of sales with sales to private buyers down for the second consecutive month. Although EV sales are buoyant, SMMT says that much of that is down to discounting with SMMT CEO Mike Hawes calling for government incentives to boost demand in the upcoming spending review. 'A return to growth for new car registrations in May is welcome but manufacturer discounting on new products continues to underpin the market, notably for electric vehicles. This cannot be sustained indefinitely as it undermines the ability of companies to invest in new product development – investments which are integral to the decarbonisation of all road transport. 'Next week's spending review is the opportunity for government to double down on its commitments to net zero by driving demand through fiscal measures that boost the market and shore up our competitiveness.' SMMT is calling on the government to halve VAT on new electric vehicle purchases saying it could lead to an additional 267,000 new EVs being used instead of fossil fuel vehicles over the next three years, potentially reducing CO2 emissions by six million tonnes annually. SMMT is also saying that EVs should be removed from the Vehicle Excise Duty (VED) Expensive Car Supplement, while VAT for public and home charging should be equalised at 5 per cent to encourage more consumers to consider switching to electric vehicles. Commenting on the latest registration figures, Fiona Howarth, founder of Octopus Electric Vehicles said 'we've seen yet another strong month for EVs – proving that people want to drive electric. There has been a clear shift in the market, with car manufacturers new and old bringing out new, cheaper models every month, improving driver choice and helping to make the switch to cleaner, low-cost driving.'
Yahoo
a day ago
- Business
- Yahoo
ONS admits inflation blunder
Britain's beleaguered statistics agency has admitted that it overstated April's inflation figures after uncovering errors in its data. On Thursday, the Office for National Statistics (ONS) confirmed annual inflation hit 3.4pc last month, compared to its previous calculation of 3.5pc. Official blamed the blunder on faulty car tax data provided by the Government, as Whitehall provided the relevant numbers on Vehicle Excise Duty (VED). However, the mishap will no doubt pile pressure on the ONS, which has been repeatedly criticised over the past year for publishing flawed data about the UK jobs market. As well as lowing the headline rate of inflation, Thursday's correction will also take 0.1 percentage points off the retail price index, reducing that measure to 4.4pc. This embedded content is not available in your region. This will be of significance for Rachel Reeves, the Chancellor, as a significant chunk of the Government's debt is linked to the measure. Some economists will also breathe a sigh of relief after last month's price rises were higher than they expected. It comes at a critical time for the economy as the Bank seeks to work out how far and how fast to cut interest rates. Threadneedle Street's policymakers, led by Governor Andrew Bailey, try to set borrowing costs to keep inflation at or around 2pc, with their decisions are guided by data from the ONS on price rises and unemployment. However, Mr Bailey told MPs this week that the Bank of England is now now using a much broader range of data after recent shortcomings at the ONS, which has struggled with a poor response rate post-Covid. 'It is a work in progress,' said Mr Bailey. 'I don't want to take away from the fact that the ONS is working very hard at this. 'There is a very severe health warning on every release they make. Until they introduce what they call the new transformed labour force survey (LFS), which will not be until next year, we should still regard the LFS with a great deal of caution and a big health warning.' The latest admission from the ONS startled analysts and moved financial markets, with potential repercussions for household and business finances. Bruna Skarica, at Wall Street bank Morgan Stanley, noted the jump was far larger than anything she had thought possible. It also fed straight into forecasts for the Bank of England's interest rate cuts. 'Today's data raises doubts on expectations for two further cuts this year,' said Gabriella Dickens, economist at AXA Investment Managers. Critically for borrowers, those forecasts have already led to trades trimming their bets for a summer rate cut, meaning borrowing costs are likely to remain higher for longer. The ONS was approached for comment. Sign in to access your portfolio
BBC News
a day ago
- Business
- BBC News
UK inflation number for April too high after data blunder
The UK's statistics agency has said the headline inflation rate for April was too high after it discovered it had been given incorrect road tax data by the Department for Office for National Statistics (ONS) said the pace of general price rises should have been 3.4%, instead of the 3.5% it had comes as the ONS faces a crisis of confidence in its work after concerns about the quality of its concerns make it more difficult for the government and companies to make fully informed decisions about the UK economy. The ONS said it had spotted an error in Vehicle Excise Duty data. It found that the number of vehicles people were paying road tax on in the first year of registration was too high in the data that was statistics agency said it would not be amending April's inflation figure, in line with a policy that it only carries out revisions in exceptional it did say it would be reviewing how it checks the quality of data from outside the agency "in light of this issue".Both the Consumer Prices Index (CPI) and Retail Prices Index (RPI) inflation figures were 0.1 of a percentage point too high for the year to April. Last month, the ONS's former head Sir Ian Diamond resigned with immediate effect due to health April, the UK's Office for Statistics Regulation had set out its concerns about the quality of the data provided by the ONS concerns focused on, but were not limited to, widely-recognised problems with the Labour Force Survey which is used to measure the unemployment rate in the the pandemic, statistics agencies around the world have struggled to get good enough response rates to ensure their data is of the quality they would regulator said it would like more assurance that the ONS had sufficient steps in place to regularly review and improve sample design and representativeness, tackling bias, survey methodology, and imputation.
CNBC
2 days ago
- Automotive
- CNBC
UK April inflation overstated because of car tax error, UK statistics agency says
A car tax data calculation error caused the U.K.'s inflation rate to be overstated by 0.1 percentage points for the year to April, the Office for National Statistics (ONS) said on Thursday. The ONS had initially said last month that the U.K.'s annual rate hit 3.5% in April, coming in above analyst expectations. On Thursday, the statistics body released revised data, showing the country's consumer price index rose instead by a lower 3.4% in the 12 months to April. The revised April figure still exceeds the 3.3% levels previously expected by Reuters analysts. The ONS released a statement noting that an error had been identified in the Vehicle Excise Duty (VED) data provided to the statistics body by the U.K.'s Department for Transport, which is one metric used to calculate consumer prices inflation. "The incorrect data overstates the number of vehicles subject to Vehicle Excise Duty (VED) rates applicable in the first year of registration," it said. This had the effect of overstating the headline CPI and Retail Prices Index (RPI) annual rates by 0.1 percentage points for the year to April 2025 only. No other periods are affected, the ONS said. "In line with our consumer prices revisions policy, these statistics will not be amended. However, we are reviewing our quality assurance processes for external data sources in light of this issue." The mistake is an unwelcome smear on the already stained record of the ONS, which has been criticized in some quarters for the accuracy and reliability of its data. The statistics agency apologized for the error and said it would be using the correctly weighted data from May 2025's figures onward, "meaning no further statistics will be affected." CNBC has requested further comment from the ONS and is awaiting a response.
Yahoo
2 days ago
- Business
- Yahoo
UK car tax error overstated inflation by 10 basis points, ONS says
LONDON (Reuters) -An error in car tax data provided by the British government caused the consumer price inflation rate to be overstated by 0.1 percentage points for the year to April, the Office for National Statistics (ONS) said on Thursday. The retail price index, which is used to set payments on index-linked gilts, was also overstated by 10 basis points, as was the CPIH rate that includes home ownership costs, it said. The ONS said the statistics would not be amended, but it was reviewing its quality assurance processes for external data in light of the issue. The British statistical agency was already facing criticism over its unreliable labour market figures, and the government in April launched an investigation into the effectiveness of the official economic data it publishes. According to data published last month, consumer price inflation rose by 3.5% in the 12 months to April, up from 2.6% in the 12 months to March. The ONS said the incorrect data overstated the number of vehicles subject to Vehicle Excise Duty rates in the first year of registration. It said it would be using the correctly weighted data from May figures onwards, meaning no further statistics would be affected.
