Home news Budget 2017: What does the diesel change mean?

Budget 2017: What does the diesel change mean?

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The sale of new diesel cars that do not meet latest emissions standards will face a tax increase in April.It will apply to all diesels that do not meet the Real Driving Emissions Step 2 standards on emissions.According to experts this means that most new diesels would be subject to a rise.Philip Hammond said the diesel tax change would apply only to cars, and “white van man” was unaffected.The chancellor said: “Drivers buying a new car will be able to avoid this charge as soon as manufacturers bring forward the next-generation cleaner diesels that we all want to see.The move was part of a series of Budget policies designed to improve air quality and promote electric vehicles.Live: Budget reaction and analysis
At a glance summary: Budget key points
The chancellor also unveiled a £220m Clean Air Fund, and £400m to improve the charging infrastructure for electric vehicles.By Richard Westcott, transport correspondent:The key thing… if you’ve already got a diesel car, you won’t pay more.That’s hardly a surprise, bearing in mind people were encouraged to buy diesels some years ago. The government wasn’t about to slap a big tax on drivers who parted with lots of money in good faith.From April though, if you are buying a new diesel, you will probably pay more road tax in the first year. It depends on the emissions test that it had to pass, so I’d ask the dealer before you buy.The new tax rise will apply until around 2021, by which time all new cars have meet the tighter pollution rules. And this only applies to cars, not vans, trucks, et cetera.So, it’s more of a soft, brushing nudge rather than a big push to persuade people away from polluting diesels.Of course, there is a danger that it convinces drivers to keep their old, dirtier diesels, rather than buy a new, cleaner one.Peter Williams, of the motoring group RAC, said: “The chancellor has chosen to be relatively light touch when it comes to taxing new diesel cars.”Any new diesel car registered from 1st April 2018 will be hit with a higher first year tax rate unless they conform to the latest real world driving standards. “So current beleaguered owners of diesel cars can breathe a sigh of relief that they will not be punished further by the Treasury – but they will need to keep their eyes on local authorities who may be introducing clean air zones in the near future.”He added that a side effect of the Budget announcement might be that there is a risk it might encourage some drivers to keep their older diesel vehicles.Mr Hammond also set out plans to promote more electric vehicle charging points, setting aside £200m – a figure that will be matched by the car industry – to improve the infrastructure.There will also be another £100m in subsidies to help persuade consumers to buy electric vehicles.
Source: BBC News

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