Latest news with #VehicleExciseDuty
Scottish Sun
4 days ago
- Business
- Scottish Sun
Chancellor Rachel Reeves rules out raising rates of income tax, National Insurance, or VAT
Treasury sources insisted they were sticking to the 2024 manifesto's pledge on key taxes TAXING TIMES Chancellor Rachel Reeves rules out raising rates of income tax, National Insurance, or VAT Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) RACHEL Reeves has ruled out raising rates of income tax, National Insurance, or VAT. Economists warned the Chancellor might have to break Labour's manifesto pledge not to raise any of those taxes. Sign up for Scottish Sun newsletter Sign up Experts say she may need up to £30billion more in revenue to cover sluggish growth and Labour U-turns. On Tuesday, she told Cabinet ministers that rebels' reversal of planned benefit reforms meant taxes would have to rise. But Treasury sources insisted they were sticking to the 2024 manifesto's pledge on key taxes. It comes after a tough week for the Cabinet minister, who was seen crying in the Commons at PMQs on Wednesday. READ MORE ON RACHEL REEVES TAKING US FOR FUELS Brits face MORE pumps misery as fears mount Reeves will hike fuel duty She later said her tears had been caused by a 'personal issue'. Yesterday The Sun reported that drivers already hammered by soaring motoring taxes could face fresh pain at the pump with a fuel duty hike. Reeves was understood to be 'considering everything' at the next Budget after her welfare U-turn — prompting fears for motorists. Top Tory Dame Priti Patel said a hike would mean a 'betrayal of working people'. The AA said motorists are already being squeezed, with Vehicle Excise Duty rising by £30 since 2022, plus millions more paid in parking charges, tolls and congestion fees. AA boss Edmund King also warned any rise at the pumps 'could be catastrophic' for the UK economy. He added: 'The added danger is increased duty simply fuels higher inflation. The strong message to the Chancellor is 'keep it down'.' Rachel Reeves FINALLY addresses Commons tears after she and Keir Starmer put on awkward show of unity
The Irish Sun
5 days ago
- Automotive
- The Irish Sun
Hard-pressed Brits face MORE misery at the pumps as fears mount Rachel Reeves will hike fuel duty
DRIVERS already hammered by soaring motoring taxes could face fresh pain at the pump with a fuel duty hike. Top Tory Dame Priti Patel said a hike would mean a 'betrayal of working people'. The AA says motorists are already being squeezed, with Vehicle Excise Duty rising by £30 since 2022, plus millions more paid in parking charges, tolls and congestion fees. AA boss Edmund King also warned any rise at the pumps 'could be catastrophic' for the UK economy. He added: 'The added danger is increased duty simply fuels higher inflation. The strong message to the Chancellor is 'keep it down'.' READ MORE ON FUEL DUTY The AA says motorists are already being squeezed from all sides, with Vehicle Excise Duty jumping from £165 to £195 since 2022, and millions more paid in parking charges, tolls and congestion fees. Drivers of older cars, including popular models like the Ford Fiesta and VW Golf, also face a £160 tax hike when they are eventually forced to upgrade to newer vehicles. The Sun's Keep It Down campaign has helped freeze fuel duty since 2011 - saving drivers thousands but ministers are under pressure to find cash after billions were pledged to reverse planned welfare cuts. A Treasury spokesperson said: 'We extended the fuel duty cut this year, saving drivers £3billion, and we're investing £1.6billion to end the pothole plague by fixing up to seven million extra potholes.' Most read in Motors Pressed on whether she would raise taxes, Reeves said: 'Of course there is a cost to the welfare changes that parliament voted through this week and that will be reflected in the budget. 'But I'm also very, very clear that [the] stability that we've been able to return to the economy, which has enabled the Bank of England to cut interests rates four times, is only possible because of the fiscal discipline which is underpinned by the fiscal rules. Never Mind The Ballots Fuel Duty Debate "And we'll be sticking to those because they're absolutely vital for the living standards of working people and also the costs that businesses face.' 1 Hard-pressed Brits could face a fuel duty hike after Labour's welfare U-turn
Scottish Sun
5 days ago
- Automotive
- Scottish Sun
Hard-pressed Brits face MORE misery at the pumps as fears mount Rachel Reeves will hike fuel duty
AA boss Edmund King also warned any rise at the pumps 'could be catastrophic' for the UK economy TAKING US FOR FUELS Hard-pressed Brits face MORE misery at the pumps as fears mount Rachel Reeves will hike fuel duty DRIVERS already hammered by soaring motoring taxes could face fresh pain at the pump with a fuel duty hike. Rachel Reeves is understood to be 'considering everything' at the next Budget after her welfare U-turn — prompting fears for motorists. Advertisement Top Tory Dame Priti Patel said a hike would mean a 'betrayal of working people'. The AA says motorists are already being squeezed, with Vehicle Excise Duty rising by £30 since 2022, plus millions more paid in parking charges, tolls and congestion fees. AA boss Edmund King also warned any rise at the pumps 'could be catastrophic' for the UK economy. He added: 'The added danger is increased duty simply fuels higher inflation. The strong message to the Chancellor is 'keep it down'.' Advertisement The AA says motorists are already being squeezed from all sides, with Vehicle Excise Duty jumping from £165 to £195 since 2022, and millions more paid in parking charges, tolls and congestion fees. Drivers of older cars, including popular models like the Ford Fiesta and VW Golf, also face a £160 tax hike when they are eventually forced to upgrade to newer vehicles. The Sun's Keep It Down campaign has helped freeze fuel duty since 2011 - saving drivers thousands but ministers are under pressure to find cash after billions were pledged to reverse planned welfare cuts. A Treasury spokesperson said: 'We extended the fuel duty cut this year, saving drivers £3billion, and we're investing £1.6billion to end the pothole plague by fixing up to seven million extra potholes.' Advertisement Pressed on whether she would raise taxes, Reeves said: 'Of course there is a cost to the welfare changes that parliament voted through this week and that will be reflected in the budget. 'But I'm also very, very clear that [the] stability that we've been able to return to the economy, which has enabled the Bank of England to cut interests rates four times, is only possible because of the fiscal discipline which is underpinned by the fiscal rules. Never Mind The Ballots Fuel Duty Debate "And we'll be sticking to those because they're absolutely vital for the living standards of working people and also the costs that businesses face.' 1 Hard-pressed Brits could face a fuel duty hike after Labour's welfare U-turn
The Independent
05-06-2025
- Automotive
- The Independent
UK electric car sales jumped by over 25 per cent in May
Latest car registration figures from SMMT (Society of Motor Manufacturers and Traders) show the popularity of electric cars is rising fast but is still falling short of government targets. Nearly 33,000 new EVs hit the roads in May, up 25.8 per cent on 2024 figures. That means electric cars account for 20.9 per cent of all new car sales so far in 2025, some way off the government's ZEV Mandate target of 28 per cent. Car makers that fail to hit the 28 per cent figure face fines or will have to find ways to use credits that can include buying them from other car makers. Plug-in hybrid cars are also growing in popularity with registrations up 50.8 per cent on last May with a total of 17,898 PHEVs sold. And although petrol models still account for the vast majority of new car sales, taking 49 per cent of all car sales so far in 2025, the figure for May shows a drop of 12.5 per cent year-on-year. Overall, the car market returned to growth in May, up by 1.6 per cent and the best May for car sales since 2021. However, SMMT says that the fleet and business sector was responsible for the bulk of sales with sales to private buyers down for the second consecutive month. Although EV sales are buoyant, SMMT says that much of that is down to discounting with SMMT CEO Mike Hawes calling for government incentives to boost demand in the upcoming spending review. 'A return to growth for new car registrations in May is welcome but manufacturer discounting on new products continues to underpin the market, notably for electric vehicles. This cannot be sustained indefinitely as it undermines the ability of companies to invest in new product development – investments which are integral to the decarbonisation of all road transport. 'Next week's spending review is the opportunity for government to double down on its commitments to net zero by driving demand through fiscal measures that boost the market and shore up our competitiveness.' SMMT is calling on the government to halve VAT on new electric vehicle purchases saying it could lead to an additional 267,000 new EVs being used instead of fossil fuel vehicles over the next three years, potentially reducing CO2 emissions by six million tonnes annually. SMMT is also saying that EVs should be removed from the Vehicle Excise Duty (VED) Expensive Car Supplement, while VAT for public and home charging should be equalised at 5 per cent to encourage more consumers to consider switching to electric vehicles. Commenting on the latest registration figures, Fiona Howarth, founder of Octopus Electric Vehicles said 'we've seen yet another strong month for EVs – proving that people want to drive electric. There has been a clear shift in the market, with car manufacturers new and old bringing out new, cheaper models every month, improving driver choice and helping to make the switch to cleaner, low-cost driving.'
Yahoo
05-06-2025
- Business
- Yahoo
ONS admits inflation blunder
Britain's beleaguered statistics agency has admitted that it overstated April's inflation figures after uncovering errors in its data. On Thursday, the Office for National Statistics (ONS) confirmed annual inflation hit 3.4pc last month, compared to its previous calculation of 3.5pc. Official blamed the blunder on faulty car tax data provided by the Government, as Whitehall provided the relevant numbers on Vehicle Excise Duty (VED). However, the mishap will no doubt pile pressure on the ONS, which has been repeatedly criticised over the past year for publishing flawed data about the UK jobs market. As well as lowing the headline rate of inflation, Thursday's correction will also take 0.1 percentage points off the retail price index, reducing that measure to 4.4pc. This embedded content is not available in your region. This will be of significance for Rachel Reeves, the Chancellor, as a significant chunk of the Government's debt is linked to the measure. Some economists will also breathe a sigh of relief after last month's price rises were higher than they expected. It comes at a critical time for the economy as the Bank seeks to work out how far and how fast to cut interest rates. Threadneedle Street's policymakers, led by Governor Andrew Bailey, try to set borrowing costs to keep inflation at or around 2pc, with their decisions are guided by data from the ONS on price rises and unemployment. However, Mr Bailey told MPs this week that the Bank of England is now now using a much broader range of data after recent shortcomings at the ONS, which has struggled with a poor response rate post-Covid. 'It is a work in progress,' said Mr Bailey. 'I don't want to take away from the fact that the ONS is working very hard at this. 'There is a very severe health warning on every release they make. Until they introduce what they call the new transformed labour force survey (LFS), which will not be until next year, we should still regard the LFS with a great deal of caution and a big health warning.' The latest admission from the ONS startled analysts and moved financial markets, with potential repercussions for household and business finances. Bruna Skarica, at Wall Street bank Morgan Stanley, noted the jump was far larger than anything she had thought possible. It also fed straight into forecasts for the Bank of England's interest rate cuts. 'Today's data raises doubts on expectations for two further cuts this year,' said Gabriella Dickens, economist at AXA Investment Managers. Critically for borrowers, those forecasts have already led to trades trimming their bets for a summer rate cut, meaning borrowing costs are likely to remain higher for longer. The ONS was approached for comment. Sign in to access your portfolio
