Motorists 'less likely to choose diesel cars' following Autumn Budget tax changes

30 Nov 2017

A survey carried out by CLM Fleet Management has suggested that UK drivers are less likely to purchase diesel cars, following tax changes made by Chancellor Philip Hammond in the recent Autumn Budget.

The Chancellor announced that, for new diesel vehicles registered after 1 April 2018 that do not meet the Real Driving Emissions 2 (RDE2) standard, a supplement will be charged on their First Year Rate, to the effect of moving up by one Vehicle Excise Duty (VED) band.

After the first year, vehicles with zero emissions will be exempt from the standard rate of vehicle tax, and other petrol or diesel vehicles will pay a standard rate of £140 a year. An additional rate will be added to the vehicle tax for all new vehicles with a list price of over £40,000.

59% of survey respondents stated that they would be less likely to purchase a diesel car as a result of the increase in VED from April 2018.   

The Chancellor also announced that the diesel supplement will be increased from 3% to 4% from 6 April 2018, but will be removed altogether for diesel cars which are certified to the RDE2 standard.

The CLM survey also quizzed respondents over this increase: 62% said that the change will not impact upon their buying decision, with a further 17% stating that they would be less likely to choose a diesel car.  

Commenting on the findings, John Lawrence, Managing Director of CLM Fleet Management, said: ‘We have already seen a steep decline in diesel sales this year as drivers have reacted to negative publicity around poor air quality and diesels. And these latest announcements look set to accelerate that process.’