T&E UK's 'Large Vehicle Levy' explained

Heavily polluting SUVs are getting an unfair tax break.

The current Vehicle Excise Duty (VED) doesn’t reflect the true impact of the biggest, heaviest vehicles on our roads.

SUVs now dominate the market—yet many still pay the same or less tax than smaller, cleaner cars.

THE COST?

• Increased danger to other road users: A 10 cm increase in vehicle front height raises the risk of pedestrian and cyclist fatalities by 30%.

• Squeeze space in public spaces: Around 1.4 million cars sold each year are larger than the average UK parking space.

• Increased climate impacts: 83% of UK SUV registrations are petrol, diesel, hybrid, or plug-in hybrid, locking in higher CO₂ emissions for the next 10-15 years.

• Impact on road wear: A two-tonne SUV causes 16 times more road damage than a one-tonne car.

THE SOLUTION?

A Fair Tax by Vehicle Weight which will:

• Raise almost £2 billion for public services

• Support fiscal stability

• Make sure bigger cars pay their fair share

• Deliver on the UK’s climate and safety promises—without penalising families.

The Heavier the Car, the Higher the Cost:

How it works: How it works: A flat rate of £10 per kilogram applies to every kilo above 1,600 kg.

Who pays? Not small or mid-sized family cars. The threshold is set above the average weight of popular models like the VW Golf or Ford Puma (around 1,400 kg).

Who does it target? The heaviest, most space-hungry models – especially oversized luxury SUVs.

BEVs get a fair allowance: To reflect the added
weight of batteries, new electric models get a 400
kg buffer, setting their threshold at 2,000 kg.

Why 1,600 kg? It’s a fair cut-of, already in use in
France’s “weight malus,” ensuring typical family cars
are protected while bulkier vehicles pay their way.
Simple & transparent: Based on the car’s official kerb weight (already declared at registration). No new testing. No extra admin. Just a straightforward, progressive
charge.

The result: A levy that’s fair, affordable, and encourages
smarter, more efficient car choices - not to mention this would raise £1.72 billion annually.

IT’S TIME FOR TAX FAIRNESS ON UK ROADS.

To speak with T&E UK for more information you can
contact our Vehicles Policy Manager Tim Dexter on
tim.dexter@transportenvironment.org