MPs are calling on Chancellor George Osborne to consider a diesel scrappage scheme and introduce a nitrogen oxide-based vehicle excise duty (VED) in his Autumn Statement.
It comes in a report from the Environmental Audit Committee published in response to the Government's draft plans to improve air quality in the UK. The MPs believe a diesel scrappage scheme and including NOx alongside CO2 to determine VED bands will encourage drivers out of the most polluting diesel vehicles.
Environmental Audit Committee chairman, Huw Irranca-Davies MP, said Osborne has a great option to rebalance emissions in his annual Autumn Statement, due to be delivered to the House of Commons on 25 November.
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Following this year's General Election, Osborne presented his emergency budget which featured a revised VED structure from 2017 to take into account the rising number of hybrid and electric cars. All VED raised will now go into a road fund to pay for repairs.
Irranca-Davies said: "Tens of thousands of premature deaths are being caused in the UK every year by illegal levels of air pollution on our roads. Despite mounting evidence of the damage diesel fumes do to human health, changes to Vehicle Excise Duty announced in this year’s Budget maintained the focus only on CO2 emissions. This was a missed opportunity to also incentivise vehicles which emit less NO2.
"The Treasury must use VED to create long-term incentives for drivers to buy cleaner hybrid and electric cars that minimise both CO2 and harmful pollutants. Introducing a national diesel scrappage scheme could also provide a short-cut to cleaning up the air in our cities.”
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Other things to expect from the Autumn Statement include a decision on fuel duty. It's been frozen for the last few years and all eyes will be on Osborne to see if he commits to another freeze.
Osborne also announced earlier this year that first MoTs could be extended to four years and could lay out a clearer strategy for this on 25 November.
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