Positively, following NFDA’s lobbying efforts, the Government has decided to not change the current Vehicle Excise Duty (VED) system for light commercials and motorhomes.
Following a period of consultation, the Government has abandoned its plans to amend the current Vehicle Excise Duty (VED) system for Light Commercial Vehicles (LCVs) and Motorhomes.
The Government has announced “it will not now introduce a new graduated system of Vehicle Excise Duty for light goods vehicles or motorhomes from April 2021, to avoid distracting the automotive sector and businesses more widely from the challenges they currently face in light of the COVID-19 pandemic”. Motorhomes will continue to be placed in the Private/Light Goods class.
The proposal was to take the “granular” approach based on CO2 emissions, similar to the system currently used for cars. During the consultation process, NFDA lobbied on dealers’ behalf to retain the current VED structure based on:
- The punitive nature towards businesses that require larger payload vehicles
- The design and build of LCVs and Motorhomes, not lending themselves to low emissions
- The simplicity and transparency of the current system
- The difficulty of obtaining CO2 figures due to coachbuilding and body conversions
Government’s decision to not change the current VED system validates NFDA’s advice and draws further attention to the issues around the pandemic and the effects this is having on small businesses requiring LCVs and consumers choosing motorhomes as a way to access holidays with current travel restrictions.
We welcome the Government’s decision and look forward to continuing to work closely with the relevant departments to best represent our commercial vehicle dealer members’ views.