February 2022 Newsletter – Market News
Possible introduction of a new ‘mileage-based road tax’
Earlier in the month, we wrote a blog referencing a potential new mileage-based road tax. The new tax would see individuals pay a varying tax rate, depending on the environmental impact of the vehicle and the number of miles the individual completes.
Currently, the governments collects tax through vehicle excise duty, and fuel duty. However, there is a worry that as more individuals make the switch to electric vehicles, the money generated through these tax incomes will dry up, as electric vehicles do not pay vehicle excise duty, or require fuel. Hence, the government will have a 4% tax gap which they will need to fill to maintain public spending in key areas such as healthcare and education.
If you would like to know more about the tax, please see our blog.
Greater Manchester Clean Air Zone (GMCAZ) delay
February also saw an update to the GMCAZ.
The GMCAZ was set to commence from May 2022. However, Greater Manchester Mayor, Andy Burnham, put in a request for the scheme to be put on hold for a few months, so a public consultation could take place.
If you would like to see the EVP perspective on the delay, please take a look.
Oxford Zero Emission Zone
The latter part of February saw implementation of Oxford’s ‘Zero Emission Zone’.
To start, the zone will only apply to a section of Oxford City Centre, and will be enforceable between 7am – 7pm. However, all vehicles which are not zero emission will be liable to charges. From next year, the zone will cover the rest of the city.