Government warned of potential legal challenges over diesel car taxes

New taxes on high-polluting diesels could cause legal issues for the government after claimed incentivising.

The government has been warned of potential legal repercussions with its new diesel tax after accusations of penalising owners now having incentivised them previously.

Speaking to Auto Express, Damon Parker, partner at law firm Harcus Sinclair, said:

“There is evidence that the previous government promoted diesel car sales on a knowingly false basis. On the basis of the evidence, the government has a case to answer.

“The tactic of forcing diesel owners to part with their vehicles through financial penalties is not only unfairly prejudicial, but may be unlawful and subject to challenge.”

Diesel drivers have arguably been demonised throughout the UK in recent months. 

Philip Hammond announced in his 2017 Autumn Budget speech last week that higher taxes would be placed on diesel cars not meeting RDE2 (Real Driving Emissions) standards, while London has recently introduced the T-Charge — which adds an extra £10 for motorists in higher-emitting vehicles, targeted largely at diesels.

Islington Council in London will also be introducing a £2 extra parking charge on diesel vehicles in 2018. 

Under previous government, incentives were introduced to get motorists into diesels. In 2001, Labour chancellor Gordon Brown reduced Vehicle Excise Duty on diesel vehicles, which was then promoted as a ‘green’ fuel.

Parker said:

“New evidence suggests that the Blair-Brown tax incentives were introduced despite ministers knowing that air quality would decline if diesel sales rose.

“Today, the same vehicles successive governments pushed on the back of their environmental qualities are now being hit by additional tax and other deterrents. The most significant cost, however, is likely to lie in the drop in the residual values of these vehicles.”