Car tax changes for 2021 could push drivers suffering hardships to ‘breaking point’

Martin Lewis gives money-saving advice on VED car tax

Car tax updates would not go down favourably with road users who are suffering “massive hardship” due to the pandemic and an expected recession, according to motoring lawyer Nick Freeman. Charges will increase in London from October with the ULEZ emissions scheme extending to Outer London boroughs.

Mayor Sadiq Khan has already mooted the idea of a £3.50 daily charge to be introduced this year for those who travel into Outer London regions.

Drivers who own heavily polluting vehicles will also be taxed in Bath and Birmingham when new Clean Air Zone projects launch later this year.

Parking taxes could be boosted in 2021 with Leicester City Council looking into a workplace parking levy.

Residents based in Newham, London have been forced to pay extra tax charges on parking permit applications from 2021.

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Speaking exclusively to, Nick Freeman said instead of taxing drivers, councils needed to “accept reality” and cut costs.

He said drivers were already suffering and would not be able to simply “fill the void” of lost revenues.

Mr Freeman told “Everyone has a breaking point.

“The vast majority of people in the country have either lost their business or sustained a serious downturn. We are about to hit a serious recession.

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“Everybody, including councils, have to look and accept reality and accept actually we are going to need to live off far less money.

“So, how are we going to become more efficient? How are we going to make this work?

“The motorist, who they are looking at to try and fill this void is sustaining massive hardship already so how can the motorist say ‘no problem mate I’m doing really well, here you go’?”

The Treasury has warned the switch to electric cars could leave a £40billion hole in public spending.

This is because the revenue generated from traditional Vehicle Excise Duty (VED) and fuel duty charges would fall as more made the switch away from petrol and diesel vehicles.

To combat the fall in spending, the Chancellor is understood to be considering the introduction of a new pay per mile road pricing charge.

This would see drivers pay based on how many miles they completed on their journey rather than based on fuel type.

However, Mr Freeman added road users would likely be against the scheme and would find any further taxation “grossly unfair”.

He told “Where the Government wants it to end up and where the drivers want to end up are two very different places, one’s Land Ends and the others John O’Groats.

“What the Government would like to do is probably to charge a private road toll system and charge you a monumental fee for every mile you do, certainly during rush hour.

“What the motorists want is to say we are already taxed heavily enough when we buy the vehicle when we buy fuel, any further tax would be grossly unfair.

“I don’t know where it’s going to end because I think the motorist is close to breaking.”

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