Written Question·Treasury·UIN 83453
Motor Vehicles: Excise Duties
Tabled: 20 October 2025
Answered: 28 October 2025
Question
Antonia Bance
Labour — Tipton and Wednesbury
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of charging a 5% surcharge when paying vehicle tax by direct debit on lower income motorists; and whether she has plans to remove this surcharge.
Answer
Dan TomlinsonWhen Vehicle Excise Duty (VED) is paid monthly or six-monthly, rather than annually, the cost to the exchequer is higher because of lost interest. To reflect this impact on the public finances, the previous government introduced in 2014 an extra charge fo...
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