Overview

• Transport & Environment published a Large Vehicle Levy that would charge £10 per kilogram above 1,600kg, with a 400kg allowance for battery‑electric cars.
• The analysis estimates about £1.72bn in annual revenue today, potentially nearing £2bn, with SUVs accounting for almost 60% of new registrations and 77% of new models not fully electric.
• The group is urging Chancellor Rachel Reeves to adopt the measure in the Autumn Budget to reflect the wider costs of heavier cars.
• T&E highlights an SUV tax gap, noting a £85,000 BMW X5 incurs roughly £3,200 in UK tax versus about £66,600 in France, with UK SUV sales around four times higher than France.
• The SMMT opposes the proposal, warning it would penalise families and hinder EV uptake, while polling shows majority support and some vehicles, such as a Land Rover Defender, could face more than £10,000 in extra tax.