Campaigners are calling on Labour to scrap car tax fees for millions of petrol and diesel vehicles in the UK as part of a major overhaul. The Alliance of British Drivers (ABD) said tax charges should be cut for older vehicles registered more than 12 years ago instead of electric cars.
The Society of Motor Manufacturers and Traders (SMMT) demanded tax cuts for new electric car buyers to increase incentives to switch. However, the ABD warned that Vehicle Excise Duty (VED) discounts should instead be offered to those "struggling to keep their older cars on the road”. A reduction for vehicles over 12 years could see more than 10 million handed the benefit in a massive boost for cash-strapped road users.
According to previous data from the SMMT, of the 34 million cars on UK roads, 16 million are over ten years old with 10.5 million registered at least 12 years ago.
Brian Gregory, ABD policy director stressed there was an argument that offering discounts to older cars was a sustainable move.
He said: “Subsidies and tax cuts do not grow on trees, they have to be paid for by the public in some form or other.
“If public money is to be used to assist drivers it should not be channelled towards the relatively wealthy who can afford new cars.
“Instead we would be more inclined to support help for those struggling to keep their older cars on the road, which is often the most sustainable option.
“Scrapping VED on vehicles over twelve years old might be a better starting point.”
The ABD has repeatedly argued for officials to give more recognition to the role of older vehicles on UK roads.
In a previous report, the ABD argued that owners of older cars continue to “make a significant contribution to the Treasury”.
They stressed the lifespan of older cars could be “extended significantly" although electric cars cannot due to the fixed shelf-life of costly EVs batteries.
The ABD have previously said: “There are more than six million cars in the UK technology which are over the average 13.9 year threshold, and there are over a million historic vehicles registered, with a supporting industry that is valued in excess of £19 billion per annum.
“Those six million vehicles will have ‘paid off’ their CO2 debt many years ago.”