The measure

VED rates for cars, vans and motorcycles registered before 1 April 2017 will increase by RPI.

Heavy Goods Vehicles and Road User Levy rates will be frozen in 2017/18. The government plans to update the existing HGV Road User Levy to incentivise the efficient use of roads and improve air quality. There will be a call for evidence in Spring 2017.

Who will be affected?

Owners and operators of HGVs or vehicles that fall under the VED scheme.

When?

1 April 2017.

Our view

The freeze is in line with expectations. Future measures to incentivise efficient use of roads could increase revenue for HM Treasury and improve air quality.

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