The plan to increase diesel drivers' VED is hoped to reduce the amount of diesel cars on UK roads
The plan to increase diesel drivers' VED is hoped to reduce the amount of diesel cars on UK roads
A think tank named Policy Exchange has suggested that diesel drivers should be charged an £800 pollution tax to drive on UK roads.
The educational charity believes that raising the Vehicle Excise Duty (VED) for diesel drivers will reduce air pollution by deterring new car buyers from purchasing diesel cars that produce high levels of nitrogen dioxide.
The charity is close to George Osborne, who will be announcing the budget on 16th March, and Boris Johnson, the mayor of London, backs the idea.
Richard Howard, Head of Environment and Energy at Policy Exchange said: ‘London and many of the UK’s other major cities are facing an air pollution crisis, with residents exposed to illegal and unhealthy levels of NO2 pollution. If we are to clean up air pollution, then government needs to recognise that diesel is the primary cause of the problem, and to promote a shift to alternatives.’
He continued, ‘It needs to be done in a way which does not unduly penalise existing diesel drivers, who bought their vehicle in good faith, and gives motorists sufficient time to respond.’
The think tank came to the sum of £800 after estimating the cost of damage caused by the extra pollution (aside from CO2) that diesel cars create.
It is estimated that the extra tax will raise £500m per year. Richard Howard has suggested that this revenue could be put towards a diesel scrappage scheme, which would further reduce the number of diesel cars on UK roads.
A similar scrappage scheme was introduced in 2009, where the government gave £1000 to the vehicle manufacturer, and they contributed another £1000 to create a £2000 part-exchange value towards a new car.
Vauxhall replicated the idea last year by introducing a new Scrappage Allowance Scheme whereby they contribute the full £2000 towards a new Vauxhall car.
The think tank argues that diesel cars produce four times the official limit of NOx, and cause 70% of NOx emissions in London.
