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Diesel drivers face potential tax increase at next Budget

Thursday 09 March 2017, By Autovolo

Diesel drivers face potential tax increase at next Budget

Diesel drivers face potential tax increase at next Budget

Diesel car owners could be hit by a tax increase in the next budget, it has emerged.

Though a diesel scrappage scheme had been much-discussed prior to yesterday’s Spring Budget, Philip Hammond, chancellor of the exchequer, voiced no such measures.

However, the Budget document did contain some hints towards the future of diesel. It said that the government was “committed to improving air quality” and “will continue to explore the appropriate tax treatment for diesel vehicles, and will engage with stakeholders ahead of making any tax changes at the Autumn Budget 2017.”

This prompted a response from various motoring organisations, with Howard Cox, founder of the FairFuelUK campaign, saying: “Eleven million diesel owners with no affordable choice cannot be punished by a taxation scheme that will not reduce usage or pollution. And in no way should more fuel duty be added to diesel at the pumps.

“The UK already pays the highest levy in the world. Carrot not stick please.”

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: “The automotive industry is investing significantly in new technology to address the issue of air quality, so we look forward to working with the government to encourage the uptake of the latest, low-emission vehicles, regardless of fuel type.”

He said that encouraging the uptake of modern Euro 6-compliant diesels was “part of the solution”.