New diesel cars in UK could face extra pollution tax

Sales of new diesel cars in the UK may be subject to an £800 pollution tax, the Guardian reports. This move has been proposed ahead of the budget, due to be announced by George Osborne on 16 March; it is hoped it will encourage drivers to opt for lower emission vehicles to help reduce air pollution.

Air pollution in the UK is illegally high and has been linked to thousands of premature deaths every year. Although regulations are in place, it has been noted that they have failed to control the levels of nitrogen dioxide released into the atmosphere by diesel cars. Such vehicles are responsible for 70% of nitrogen dioxide emissions in London; the gas is more polluting than carbon dioxide.

The recent emissions scandal by car manufacturer VW highlighted the problem. Richard Howard, the Head of Environment and Energy at Policy Exchange, said: "London and many of the UK's other major cities are facing an air pollution crisis [...] If we are to clean up air pollution, then the Government needs to recognize that diesel is that primary cause of the problem, and promote a shift to alternatives."

Osborne announced an increase to Vehicle Excise Duty (VED) in 2015, stating that from 2017 all cars except electric will pay an additional £140 a year. For those producing the most carbon dioxide, a maximum penalty of £2,000 will be charged.

It is hoped that this new tax will raise around £500 million a year. The proceeds from the tax will be used to fund a scrappage scheme for older diesel cars, granting drivers taking their older vehicles off the road £2,000 towards the purchase of a lower emission car (£1,000 provided by the Government to be matched by £1,000 from the manufacturer).