Treasury fires ‘warning shot’ at diesel drivers amid budget announcements
A new tax regime impacting diesel drivers could come into action before the end of the year.
A "WARNING shot" has been fired at diesel drivers by the Treasury, a motoring firm has claimed.
The Government will "continue to explore the appropriate tax treatment for diesel vehicles" as part of its commitment to improving air quality, according to the main Budget document.
It added that ministers will "engage with stakeholders ahead of making any tax changes at Autumn Budget 2017".
Green campaigners have called for a diesel scrappage scheme to incentivise owners to give up their motors in favour of greener models to help cut pollution.
Responding to the Government's statement, RAC chief engineer David Bizley said:
"The Chancellor has fired a warning shot at drivers of diesel vehicles, with the suggestion in the Budget document that a new tax regime covering diesel could be announced before the end of the year.
"This uncertainty is bound to be of concern to private and business motorists alike, who will be wanting urgent clarity on just what the Government plan to do.
"The RAC will take a leading role in representing motorists when the consultation goes live."
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said:
"The automotive industry is investing significantly in new technology to address the issue of air quality, so we look forward to working with Government to encourage the uptake of the latest, low emission vehicles, regardless of fuel type.