Chancellor plans tax hike on diesels as air quality plans develop and the market continues to move toward petrols and AFVs
Jimi Beckwith
10 November 2017

Diesel cars will be taxed more heavily in a move planned to improve air quality, it will be unveiled in the Autumn budget statement on 22 November.

The Financial Times reported that chancellor Philip Hammond will penalise diesel owners in a bid to boost environment secretary Michael Gove’s clean air initiatives, which were announced in July. Hammond will either raise VAT on diesel fuel or create a new taxation on diesel vehicles. 

Overnight, the Treasury released a statement confirming this, saying: "The Government’s clean air strategy had stated that it would tax new diesel cars differently."

This will be the latest in a string of penalties for diesel drivers, with growing anti-diesel rhetoric across the media since the Dieselgate emissions cheating scandal of 2015. 

Sales of diesel cars are currently tumbling amid public distrust; the overall UK new car market contracted by 12.2% in October compared with October 2016, with diesels experiencing a 29.9% decline across the same period. This was met with criticism from SMMT CEO Mike Hawes, who accused the Government of causing consumer confusion on diesel policy.

Meanwhile, the ever-growing EV and hybrid segment continued to gain, with 36.9% growth, or 8244 registrations, in October, representing 5.2% of the total market. 

Also in October, the new T-Charge, a daily fee of £10 for pre-Euro 4 petrol and diesel vehicles to drive in the centre of London, came into effect.

Oxford has gone one step further, planning to ban diesel cars outright from the city centre by 2020, joining Germany, which will ban the sale of new diesels in the future, as well as Paris, Madrid, Athens and Mexico City, which plan to ban diesels by 2025. 

Read more: 

Diesel vehicles to be banned from Paris, Madrid, Athens and Mexico City by 2025

Diesel registrations drop by a third in October 2017

The truth about the diesel engine

Oxford plans to ban petrol and diesel cars from 2020

£10 T-charge for high polluting vehicles starts in London today

Our Verdict

Volkswagen Golf

New 1.5-litre petrol engine promises to help keep the refreshed Volkswagen Golf ahead of rivals

Join the debate

Comments
90

10 November 2017

People have been duped in to buying diesel cars and now politicians are turning on them.   Increasing taxation to hit them, and then harder hitting as who now would want a used diesel?

 

The people were told to buy diesel, coerced in to buying diesels.   Now they're being left high and dry by morally bankrupt politicians.

10 November 2017

Politicians overreacting again and not looking at all the facts, governments do not have a good track record on making big decisions and should learn from past mistakes before rushing out ill informed changes and policies.

10 November 2017

Like suicide for them to do something retrospective to annoy middle and working classes.

10 November 2017

Previous government policy was for low - or even free (!) VED for diesels.

Now they're going to backtrack on this, people who bought diesels in good faith because of these government incentives are now going to be hit?

And VAT on fuel - diesels typically have a high MPG, which reduces the pressure on oil reserves - a finite resource. Do they want us to swap 50mpg diesels for 25mpg petrol cars?

10 November 2017

The humble car drive gets hit in the pocket yet again, but 60 year old diesel locomotives, trucks and buses escape will probably escape, as you don't tax a train it can only come from fuel. But, tax fuel, then that is an excuse for us to pay higher train fares, higher bus fares and so on... Would be better to tax higher polluting vehicals full stop regardless of fuel and tier it to get thebiggest polluters off the road regardless of fuel type. A old petrol car will emit more pollution than an Euro 6 derv...

Euro 6 diesels are much, much cleaner, but as has been said time and time again, Government has conned us all into buying derv cars, won't electrify large parts of the rail network and then complain about pollution from diesel vehicles. Give it a few years it will be pertol's turn next and we will go all electric, oh that will cause balckouts as we barley have enough power as it is and not enogh power stations planned to meet future demand! La La land springs to mind.

10 November 2017
JezyG wrote:

The humble car drive gets hit in the pocket yet again, but 60 year old diesel locomotives, trucks and buses escape will probably escape, as you don't tax a train it can only come from fuel.

I'm a little surprised where you think you're going to find 60 year old diesel vehicles outside of a classic event. Trucks and buses rarely serve for more than about 15 years and while trains usually have longer lives they don't carry on that long. HST trains were built in the late 70s/early 80s which would make them amongst the longest serving, but they were re engined in the 2000s.

10 November 2017
Cé hé sin wrote:

JezyG wrote:

The humble car drive gets hit in the pocket yet again, but 60 year old diesel locomotives, trucks and buses escape will probably escape, as you don't tax a train it can only come from fuel.

I'm a little surprised where you think you're going to find 60 year old diesel vehicles outside of a classic event. Trucks and buses rarely serve for more than about 15 years and while trains usually have longer lives they don't carry on that long. HST trains were built in the late 70s/early 80s which would make them amongst the longest serving, but they were re engined in the 2000s.

What about the Class 31 1957, Class 37 1960, Class 47 1962, all still in servive abit low numbers, but still trundling up and down the network!!

10 November 2017

No private buyer was forced to buy a more expensive diesel fiesta and do 8,000 miles a year, the ones that did did it because they thought, and maybe it'll did, 60 mpg and would save them £'s in the long run.

European gov's said Diesel was good due to pressure from the French and german car companies! and people believed them. 10-3 years ago virtually no owners spent £20,000 on a car thinking of the environment, they did it for themselves. Diesel owners (other than the 15% that have a case for the fuel) you've made your bed now lie in it.

As I've said before 50% of new car sales was crazy, certain car companies got greedy and are now paying for it along with certain buyers who fell for it.

Now whatever happened to Campvanman and L320

typos1 - Just can’t respect opinion

10 November 2017
xxxx wrote:

No private buyer was forced to buy a more expensive diesel fiesta and do 8,000 miles a year, the ones that did did it because they thought, and maybe it'll did, 60 mpg and would save them £'s in the long run.

European gov's said Diesel was good due to pressure from the French and german car companies! and people believed them. 10-3 years ago virtually no owners spent £20,000 on a car thinking of the environment, they did it for themselves. Diesel owners (other than the 15% that have a case for the fuel) you've made your bed now lie in it.

As I've said before 50% of new car sales was crazy, certain car companies got greedy and are now paying for it along with certain buyers who fell for it.

Now whatever happened to Campvanman and L320

Exactly. People didn't buy or run  diesel cars because they were environmentally conscious, they were just thinking of the bottom line. And as a petrol car owner who has been subsidising diesel drivers for years through their reduced VEL and company car rates don't expect me to feel sorry for them. I don't remember any heated discussion over the plight of petrol car drivers when the situation was the other way round.

10 November 2017
catnip wrote:

xxxx wrote:

No private buyer was forced to buy a more expensive diesel fiesta and do 8,000 miles a year, the ones that did did it because they thought, and maybe it'll did, 60 mpg and would save them £'s in the long run.

Diesel owners (other than the 15% that have a case for the fuel) you've made your bed now lie in it.

Exactly. People didn't buy or run  diesel cars because they were environmentally conscious,

Typical of the drivel I've been reading all morning - people who either had their head struck in the sand or simple don't wish to let truth to get in the way of their own prejudice.

The same environmentalists who bleet on about diesel polution today are the same environmentalists that protested against Co2. All of a sudden people became interested in the Ozone layer or rather the lack of it. Ever heard of global warming? Greenhouse gases?

In response, the government of the time put in place measures to incentify the uptake of low Co2 vehicles in order to combat global warming. Today the story has completely reversed. I'm being told a 150g/km Co2 car is better than a 99g/km Co2 car. 

Given it's all my fault I bought diesel, perhaps you'd be so kind to tell everyone reading this whatever happened to the argument about global warming, the ozone layer, green house gases? Or doesn't that matter anymore? Should I just be happy that I'll be able to rid of my greenhouse and plant an orange tree in my back garden?

 

Pages

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Jaguar E-Pace 2018 review hero front
    Car review
    20 April 2018
    Can Jaguar’s compact SUV bring flair and dynamic polish to a fast-growing class?
  • Audi TT RS Coupé
    First Drive
    20 April 2018
    The Audi TT RS has the looks, a vociferous engine and the supercar-baiting performance, but is it too uncompromising to use as a daily driver?
  • Lamborghini Urus review 2018 hero front
    First Drive
    19 April 2018
    The supercar maker's new 4x4 is massively capable wherever it goes, while being extremely conspicuous and costly while it does it
  • Skoda Kodiaq
    First Drive
    19 April 2018
    High-spec seven-seater Kodiaq begins its family life with a lot to prove — for Skoda and SUVs
  • Ford Focus RS Race Red Edition front
    First Drive
    18 April 2018
    Ford drafts in some tasty extras for this limited-run Focus RS swansong edition