Pollution tax on large cars 'would raise £1.7bn a year'

Taxing SUVs in line with other European countries could raise £1.7bn a year for the UK’s public finances, research has shown.

- Gwyn Topham Transport correspondent

The Transport & Environment thinktank has urged the government to use the autumn budget to bring in a levy on the largest vehicles, which it said would reflect the damage they caused to the environment and infrastructure.

T&E said the vehicle tax system was not keeping up with market changes, with heavier and more polluting cars escaping adequate taxation and dominating sales.

An “SUV loophole” meant UK buyers paid up to 20 times less tax on the biggest models than drivers in other European countries, it said. Vehicle tax on a new £85,000 BMW X5 would amount to £3,200 in the UK but £66,600 in France.