Families who own larger vehicles could face a new tax, according to warnings from the Conservative Party. They suggest that Chancellor John Healey might introduce a levy targeting heavier cars, potentially adding over £1,000 to the price of popular models.
Treasury officials have confirmed they have engaged in discussions with the clean energy group Transport & Environment (T&E) regarding the possibility of such a road-tax supplement. T&E advocates for a "large vehicle levy," arguing that SUVs contribute to increased danger for other road users, cause more damage to infrastructure, and have higher emissions.
However, concerns have been raised that this tax could not only place an additional financial burden on drivers but also discourage the purchase of heavier electric vehicles. Some local councils already impose extra parking fees for SUVs.
Richard Holden, a Conservative transport spokesman, stated, "It seems like Labour is preparing to hit drivers with yet another tax at the Budget by measuring the width of people's wing mirrors and sending them a bill for the size. Left-wing councils have declared open season on the family car, and now ministers are looking at how to make drivers pay more for the cars they own. Families deserve answers before Labour uses the Budget to hit them with yet another bill."
In a briefing published last year, T&E proposed a charge of £10 per kilogram for new petrol cars weighing over 1,600kg (approximately 1.5 tons) and electric models exceeding 2,000kg. This proposed tax would be a one-time supplement to Vehicle Excise Duty, paid at the point of new car purchase. T&E cited an example where this charge could add £1,120 to the price of a petrol Ford Kuga, with Eloise Sacares of T&E asserting that the levy would "make oversized SUVs pay their fair share."
The Treasury has declined to comment on the speculation.