Labour to push forward with 2030 ban of petrol and diesel cars with pay-per-mile taxes 'on the table'

Lord Tony Woodley, a Labour party member warned that the announcement by the previous Conservative Government to delay the ban until 2035 threw the industry into "complete turmoil" after manufacturers invested billions into preparing for the date.

Last year, on September 20, 2023, former Prime Minister Rishi Sunak announced that the Government would seek a "new approach" to net zero measures.

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As part of this, he rolled back a handful of environmental goals, most notably the decision to delay the deadline to ban the sale of new petrol and diesel cars from 2030 to 2035.

But Woodley detailed how this had a disastrous impact on the industry with it now needing most of all flexibility as it moves forward with vehicles "disappearing from sales".

He called on the chamber to agree to meet with The Society of Motor Manufacturers and Traders to discuss the impact of the delay on jobs in the sector as well as find a path forward to meet the 2030 deadline.

Meanwhile, Viscount John Thurso from the Liberal Democrat party pointed out that while the push for electric vehicles would be pressing, "the mode of taxation would also need to change".

He explained that as the UK looks to electrify its vehicles, the mode of taxation would need to be reevaluated moving away from the traditional fuel duty.

Vehicle Excise Duty, the current taxation methods has been considered to be replaced by the new road pricing as more electric cars get rolled out. Experts have estimated the cost hikes in a similar way as drivers who currently pay a yearly rate of £190 for road tax after the first year.

In response, Baroness Judith Blake of Leeds said: "Yes the noble Lord is absolutely right, the end date for the vehicle tax relief is next year. However as the Lord and everyone else in this chamber will be aware we are approaching the Budget, and I cannot comment on any matter that might be raised in it."

For the average UK motorist driving 7,000 miles annually, this could mean a £1,050 yearly fee - a substantial increase from the current flat rate.

However, with electric vehicles set to become subject to road tax from April 2025, the new Labour Government may be exploring ways to create a fairer system that encourages the transition to cleaner vehicles.

But while the push for electric cars continues, Lord Moylan from the Conservative party queried how the Government thinks people on ordinary incomes will be able to afford the cars especially if they have to take "into account the possibility of road pricing which is on the table".

Blake explained: "We are talking about the new car market, there is an enormous amount of work that needs to be brought together around the second-hand market which also includes the recycling of the key component parts so they don't end up in landfills."

Another question raised to Blake surrounded the use of alternative fuels besides electric such as synthetic fuel and hydrogen power.

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Lord Kirkhope of Harrogate asked whether the Labour Government was putting its "eggs in the wrong basket" when there are more alternatives which offer zero emissions.

In response, Blake said: "There are trials taking place as we speak around hydrogen-fuelled vehicles everyone is open to looking at new technology and making sure we make the most of our mission to clean up the air."