Rishi Sunak accused of 'blatant hypocrisy' over road tax 'raid' on drivers

03 October 2023 , 21:30

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The Prime Minister has vowed to end the "war" on drivers (Image: HM TREASURY/UNPIXS (EUROPE))

Rishi Sunak has been accused of "blatant hypocrisy" for claiming to be on the side of motorists after taxes for drivers soared on his watch.

The Prime Minister has vowed to end the "war" on drivers with plans to limit the roll out of low traffic neighbourhoods and blanket 20mph zones. He said last week that penalising motorists “doesn't reflect the values of Britain.”

But analysis by Labour found the Treasury is raking in £1.6billion more every year in vehicle excise duty than it was before Mr Sunak became Chancellor. The DVLA collected £6.4 billion from the annual licence fee on cars, vans and lorries in 2018/19, the last full financial year before he took charge.

However receipts are set to hit £8billion for the first time this year - and is expected to soar further in future as reduced rates for electric and hybrid vehicles are removed. By 2027/28, the Treasury is forecast to collect £9.4 billion in road tax, an increase of £3 billion - or 47% - in just nine years.

For the typical motorist, driving a car originally licensed after April 2017, it cost £145 to renew their road tax with the DVLA before Mr Sunak became Chancellor. Now the same motorist will have to pay £180 in road tax this year thanks to the annual inflation increases in the licence fee.

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A Labour source said: “When Rishi Sunak talks about the war on motorists, he never mentions his own stealth raids on road tax. Millions of us are paying £35 a year more for our annual licence than we were before Rishi Sunak became Chancellor, and the Treasury is raking in billions extra from ordinary motorists as a consequence. It is blatant hypocrisy, but that’s exactly what we’ve come to expect from the man who said he believes in lower taxes, then delivered Britain’s highest ever peacetime tax burden.”

Mr Sunak has increased his rhetoric against "anti-motorist" policies following the Tories’ shock by-election victory in Uxbridge and South Ruislip. The campaign was dominated by the row over the expansion of London's ultra low emission zone (Ulez), spearheaded by the Labour Mayor of London Sadiq Khan.

Lizzy Buchan