The UK has emerged as a tax haven for large, polluting SUVs, according to a recent report from a green thinktank. The report highlights the country’s incredibly low taxes on petrol guzzling SUVs. This further establishes a positive feedback loop that continues to increase sales of these vehicles, in stark contrast to most of Europe. The UK is currently experiencing a massive boom in demand for big luxury cars. Sadly, this trend significantly contributes to the pollution of our environment.
Yet in 2023, the UK’s tax system continued to incentivise rather than discourage the growth of new SUV sales. For example, the first-year Vehicle Excise Duty (VED) for a typical medium-large SUV, like the BMW X5, is £1,565. In complete opposition, the same vehicle would cost an eye-watering €60,000 (£51,400) in France. This huge gap in taxation highlights how soft the UK is on emissions-intensive vehicles.
Additionally, France has an extra surcharge on heavier cars, raising the stakes on heavier car buyers even further. In the UK, vehicles over £40,000 are subject to an additional higher supplementary rate after year one. This additional increase fails to offset the very low starting tax burden. Climate score The UK’s fuel duty, or tax, charged on petrol and diesel vehicles remains unchanged. That doesn’t do anything to address the attractions of bigger, fancier, safer vehicles.
The fourth finding in the report is the most remarkable. Vehicle markets diverging. Higher polluting vehicles have a very high market share in the UK compared to France and other neighbouring countries. The tax paid when purchasing a new petrol or diesel SUV in the UK is merely a fraction of what buyers face in neighboring nations. As a result, advocates and researchers alike are sounding the alarm that an urgent course correction is needed to redress this imbalance.
“The UK government is missing out on an equitable and easily actionable source of revenue by not targeting wealthy buyers of oversized, over-polluting SUVs.” – Ralph Palmer, T&E’s UK electric vehicle and fleets officer
UK vehicle width and length standards have come under fire. In the UK, the average car width is much wider than in most other European nations. This renders most minimum on-street parking spaces inadequate for accommodating these larger vehicles. This trend fosters sprawl, increases commuting times, and puts a strain on the environment with increased carbon emissions.
Against this backdrop of challenges, the UK government has committed to ambitious targets to shift towards cleaner modes of transport. Their goal is to transition all new cars and vans to zero emissions by 2035. Including grants for electric car charging, to help the public through this transition, over £2 billion has already been invested.
“We want all new cars and vans to be zero emissions by 2035. We have already invested over £2bn to support this transition.” – A government spokesperson