Under the VED changes, announced in the Summer Budget, the duty in the first year will be set according to emissions, with zero emissions models not paying anything whilst the highest emitting models will pay £2,000. However, the system after the first year will see radical changes, with zero emission cars continuing to qualify for zero road tax band but any car emitting over 0g/km will attract a charge of £140 a year.

In response, the London Assembly said: “These changes will create policy uncertainty at the very time when London needs to up its game in tackling poor air quality.  Given that it is low emission vehicles that is driving growth in the UK new car market, this policy change will damage business and consumer confidence.” The view echoes that of many organisations after the changes were announced.

The London Assembly also highlighted the Budget’s lack of a zero carbon homes commitment and the changes to the Climate Change Levy as two other key policies in the Summer Budget that may limit the Mayor of London’s ability to deliver on several important environmental issues.

Murad Qureshi AM, who proposed the motion, said: “By undermining the Capital’s ability to deliver energy efficiency and improve its air quality, the Government’s summer budget represents a major hindrance to attempts to tackle London’s most significant environmental challenges.  

“With London’s global city status at stake, it’s time for the Government to show a willingness to lead the charge against the big environmental challenges. Removing incentives for, or indeed penalising, those wishing to reduce their own carbon footprint is simply not the way to go about it.”