Government should introduce 'feebates' to drive low carbon vehicle uptake says Campaign for Better Transport
Wed 27 June 2012
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A feebate scheme along the lines of the 'bonus-malus' initiative successfully introduced in France would provide a clearer signal to consumers to switch to low carbon vehicles according to the Campaign for Better Transport (CfBT). The Treasury's current review of Vehicle Excise Duty (VED) provides a good opportunity to consider the introduction of such a scheme it says.
The CfBT call was made at the Parliamentary launch of a report which was supported by a cross-party group of MPs including the Conservative MP Zac Goldsmith.
A feebate scheme works by giving buyers of low emission cars a significant rebate – potentially several thousand pounds - while buyers of high emission gas-guzzlers pay an extra fee.
With the UK Government committed to reducing greenhouse gas emissions 80 per cent on 1990 levels by 2050, the CfBT says, electric and hybrid vehicles are one of the main planks of the Government’s carbon reduction strategy. However, despite several financial incentives designed to encourage the uptake of low carbon cars, including graduated Vehicle Excise Duty (VED), Plug-In Car Grants and graduated company car taxation rules, there has been little take up so far, with just over a thousand bought through existing incentives.
Stephen Joseph, Campaign for Better Transport’s chief executive, said: “The UK has the opportunity to become a leader in electric and hybrid vehicles, which could help the Government meet its aim to rebalance and green the economy. Our report suggests that now is the perfect time to consider a more radical approach and a feebate system could work. The Treasury could learn from the operation of a similar scheme in France and develop one that is cost-neutral and encourages the take-up of low emission vehicles.”
The report was written by Malcolm Fergusson, formerly Head of Climate Change at the Environment Agency. It was launched at an event hosted by Zac Goldsmith MP at Westminster where the speakers also included Dr Julian Huppert MP and Dr Alan Whitehead MP.
Zac Goldsmith MP said: "Introduced fairly and properly, a feebate scheme would make it cheaper for people to buy cleaner cars that in turn would cost less to run. It could rapidly shift the whole market so that we pollute less and are less dependent on imported fuel. Feebates cannot be described as a stealth tax, and nor are they retrospective. Their introduction should not therefore prove controversial.”
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