A campaign to save thousands of perfectly functional cars from being scrapped due to a 'tax trap' is nearing a key milestone. Motoring enthusiasts are angered that some drivers will face nearly £800 in annual Vehicle Excise Duty from April, with further rises expected. The tax bill can represent 25-50% of a car's value, often leading to 'scrappage by taxation' where owners scrap a working vehicle because the tax is uneconomical.
Scientists argue that keeping an older car on the road is more environmentally friendly than scrapping it and buying a new one. Producing a medium-sized new car can generate over 17 tonnes of CO2, equivalent to three years of household energy use. Experts note that making a car last to 200,000 miles rather than 100,000 can cut lifetime emissions per mile by up to 50%. Vehicles only become tax-exempt as 'classics' at 40 years old.
A parliamentary petition calling for a 50% VED reduction for cars aged 20-39 has gathered nearly 50,000 signatures. If it reaches 100,000, it will trigger a Commons debate, putting pressure on Chancellor Rachel Reeves. The petition argues that high taxes force functional vehicles to be scrapped, creating a disposable culture, and that keeping existing cars is greener than building new ones.
Affected vehicles include not just high-end SUVs but also family cars like Ford Mondeos, VW Golfs, and Vauxhall Zafiras. Cars producing over 225g/km of CO2 face VED rates of £735 or £750, set to rise to £760 and £790 respectively by April 2026. Many pre-2001 cars are taxed by engine size, while those registered between 2001 and 2006 have a capped rate of £430. This has made certain models almost worthless, leading to scrapping or export.
