Helping people and business move towards cleaner forms of transport

While historic focus has been on reducing greenhouse gases, local air pollution is now recognised as a major issue for health, productivity, and wellbeing in the UK. Poor air quality leads to the equivalent of 40,000 premature deaths each year, and costs billions of pounds in lost productivity and healthcare costs.

This report sets out fiscal policy options that should be explored by Government to meet its goals in relation to vehicles and air quality, including the introduction of charging Clean Air Zones by 2020, a targeted scrappage and/or retrofitting scheme, reforms to VAT for low-emissions vehicles, and a levy on non-ULEVs in the UK. It also lays out a series of reform to make the current motoring taxation system more responsive to emissions, and to develop a future system of motoring taxation to replace the current tax base.

Read the full report here.