Baroness Randerson – 2016 Parliamentary Question to the Department for Transport

The below Parliamentary question was asked by Baroness Randerson on 2016-10-03.

To ask Her Majesty’s Government how they plan to address the shortfall in revenue from Vehicle Excise Duty since October 2014.

Lord Ahmad of Wimbledon

The amount of vehicle excise duty (VED) collected varies year on year. The Office of Budgetary Responsibility forecast that VED revenue would fall by £300 million in 2015-16. The actual reduction of £93 million was principally caused by the ever increasing number of fuel-efficient cars on the road which attract a lower rate of VED, as well as a small increase in evasion.

The DVLA operates a comprehensive package of measures to tackle VED evasion. These measures range from reminder letters, penalties and court prosecutions through to the use of Automatic Number Plate Recognition cameras, wheel-clamping and the removal of unlicensed vehicles. The latest figures show that 98.6% of all motorists comply with the requirement to pay VED.