We are calling on the Government to reconsider the planned changes to the Vehicle Excise Duty (VED).

I have been in touch with Chester MP Christian Matheson to ask him to write to the Chancellor of the Exchequer Philip Hammond about this matter.

From Saturday, April 1, vehicle tax in England is changing. Revised vehicle tax rates on new registrations will be introduced, based on the carbon dioxide (CO2) emissions of each vehicle.

A flat standard rate of £140 will apply in all subsequent years, except for zero emission cars which will pay nothing. Cars with a list price in excess of £40,000 will incur a supplement of £310 on their Standard Rate for the first 5 years in which it is paid.

In addition, if ownership of a car is transferred within the first year, a refund will only be paid on the standard rate rather than the first year rate. For UK car rental companies, who typically keep our vehicles for an average of six months, this will result in a deficit in the tax we can claim back.

The duty hike will hit the car rental industry particularly hard with an estimated 400% tax rise with the lack of refund responsible for £14m of this. As well as damaging our ability to buy the newest, cleanest vehicles, these tax increases are likely to result in higher rentals prices for our customers and put further pressure on UK inflation.

A recent analysis of BVRLA member data also indicated that the industry will buy 24,800 fewer cars this year as a result of the VED change, which will have a major knock-on effect on the environment.

Gerry Keaney, chief executive of BVRLA has said: “Rental companies account for a substantial proportion of new, low-emission car purchases in the UK, and if these changes go through, the Government will seriously damage its green agenda and air quality goals.”

As a company which provides rental vehicle to the public, we are deeply concerned at the potential impact these changes will have upon our business. We operate 1,250 vehicles in our fleet, purchase an average of 2,000 vehicles every year and support 115 jobs.

We want the Government to reconsider these changes and ensure that all individuals or businesses selling a vehicle in the first year are able to recover the full remaining tax amount paid.

For more information on the official changes https://www.gov.uk/government/publications/vehicle-excise-duty