Diesel tax: crackdown to cost diesel drivers more

Car makers are launching fresh diesel scrappage schemes, amid a growing threat of higher taxes and surcharges to drive diesels in certain areas.

Drivers are being suggested £2,000 or more by manufacturers including Ford, Mercedes and BMW to trade in their old diesel car for a brand fresh model that would be exempt from many of the proposed charges.

Details of the government’s crackdown on diesel cars to tackle air pollution will become clearer after this autumn’s Budget. The Treasury has confirmed that car tax rises for diesel owners or a fuel duty increase on diesel fuel are being considered. Further activity against diesels is expected by next March when councils must publish plans to improve air quality in their area.

Some authorities are expected to charge owners of diesel cars to drive in the most polluted cities, in what have been dubbed toxicity charges. So-called Clean Air Zones will be set up from two thousand nineteen in parts of Birmingham, Leeds, Nottingham, Derby and Southampton, and could involve a £10-a-day toll for anyone driving a diesel car that’s more than two years old.

They would be following in the footsteps of London, which is introducing a pollution charge for older cars that are driven into the centre of the capital from October.

Other measures could include banning diesel cars from some major roads where air pollution exceeds legal boundaries, or enhancing parking charges for diesels. Westminster Council in London is already imposing a £2.45 per hour parking surcharge on diesel cars that are over two years old.

Councils will also be able to set up their own scrappage schemes, permitting local residents a discount on a fresh car if they trade in an old, dirty diesel. This would be funded from a £200m government air quality fund if authorities can prove that they are “effective and value for money”.

The diesel crackdown is part of the government’s plan to improve air quality, which fails to meet legal boundaries in eighty one different local authority areas. Michael Gove, the environment secretary, said that the plan will result in fresh conventional diesel and petrol cars being banned from sale by 2040.

The extra taxes and surcharges that drivers are facing include:

• Charging some diesel car owners to drive in the centre of London Read more
• Diesel charges in other cities Read more
• Higher car tax or fuel duty for diesel drivers Read more
• Parking surcharges for diesel cars Read more
• Enhanced cost of parking permits for diesel owners Read more

For some diesel owners, the extra charges to drive their cars could cost them thousands of pounds more a year, effectively forcing them into a newer – or petrol – car and boosting the appeal of the scrappage schemes.

Gove has already encouraged diesel owners to abandon the fuel, telling Radio Four’s Today programme last month: “We know people are moving away fairly rightly from diesel cars at the moment.”

Sales of fresh diesel cars have plummeted and second-hand values are down too, even however modern diesel cars are unlikely to be affected by many surcharges because they meet the latest emissions standards, which are known as Euro 6. These limit the levels of toxic gases and particles in harass fumes, which are thought to contribute to more than 40,000 early deaths a year.

Every fresh car sold since September two thousand fifteen has had to conform with these standards and many of those sold earlier in that year do as well. Albeit there is an ongoing debate about exactly how clean these cars are, they are unlikely to face Clean Air Zone or parking surcharges (but would be affected by a fuel duty increase).

Experts are advising diesel buyers that leasing or taking out Individual Contract Purchase Finance (PCP) assures that you won’t have to foot the bill if your car is worth less than expected at the end of your agreement.

Inner-city emissions charges will begin later this year when London embarks operating its T-Charge. Owners of older petrol and diesel cars will have to pay £10 a day to drive in the centre of the capital, which comes on top of the £11.50 Congestion Charge. It will add up to more than £100 a week for some drivers.

Birmingham, Leeds, Nottingham, Derby and Southampton will have to set up Clean Air Zones by the end of 2019, according to the Department for Environment, Food and Rural Affairs (Defra) but have not yet confirmed whether they will introduce charges or take other measures to bring air pollution levels down.

A technical report from Defra, published earlier this year, suggested that twenty seven towns and cities may have to introduce Clean Air Zones with some form of charging and the Ministry is creating a sticker for fresh and second-hand cars that will tell buyers whether a vehicle will incur charges when driven in a Clean Air Zone.

Gove claims that that diesel car tolls may not be needed. “I don’t believe that it is necessary to bring in charging,” he said recently, as he encouraged measures to improve the flow of traffic, such as removing speed bumps. However, Defra’s own figures suggest that these won’t cut air pollution as quickly as charging in many areas.

Research by BuyaCar has indicated that the diesel crackdown is having a dramatic effect. Discounts of more than a quarter are available on some almost fresh diesel cars, which can make them cheaper than the equivalent petrol model. Across the entire market, values of diesel cars is leisurely pulling down according to cap hpi, which monitors used car values.

The rigid says that larger diesel cars, including SUVs, are expected to hold their value better than smaller vehicles, which are more suited to petrol engines.

The lower prices aren’t tempting drivers to comeback to diesel, tho’. A BuyaCar survey earlier this year found that more than half of current diesel owners are planning to switch their car for a petrol, electrified or hybrid vehicle.

Last month, sales of fresh diesel cars dropped by 20%, compared with a 3% fall in petrol vehicles and a 65% increase in sales of electrified and hybrid cars.

Toyota has reported a surge of interest in its efficient petrol-hybrid cars, such as the Prius (below) with sales up by 40% this year.

Motoring groups warned that officials need to balance the need to improve air pollution without draconian penalties for motorists. Many drivers rely on diesel for lower-cost long-distance motoring, or to power a larger car, such as a people carrier.

“In the early 2000s, we were encouraged in this dash for diesel and Gordon Brown gave tax incentives to buy them, which meant that the proportion of diesel cars on the road enhanced substantially,” said Edmund King, president of the AA. “Many of these people live on the outskirts of urban areas and they are finding that they could be clobbered by low emissions zones or extra parking charges.

“We also need to recall that fresh diesel cars are much cleaner. If you are doing long distance journeys, then a diesel vehicle is very likely right for you because it will be more economical over a long distance. Large cars like people carriers are usually more economical with a diesel engine too.”

King’s view was echoed by the car industry trade assets, the Society of Motor Manufacturers and Traders (SMMT). “We welcome the publication of government’s proposals for improving air quality across the UK, which clearly states that the fresh Euro six diesels which have been on sale for the past two years will not face any penalty charges anywhere in the UK,” said Mike Hawes, the SMMT’s chief executive.

Proposed taxes on diesel cars

Diesel car tax increase

Philip Hammond, the Chancellor, has confirmed that the government is examining proposals to increase taxes for diesel cars ahead of this year’s Autumn Budget.

That was confirmed this week when Defra’s Air Quality Report stated: “The Government will proceed to explore the adequate tax treatment for diesel vehicles and will engage with stakeholders ahead of making any tax switches at Autumn Budget 2017.

Hammond’s options include raising fuel duty on diesel, which would make every mile driven more expensive, or adding a diesel surcharge to car tax every year. The measures, to reduce air pollution, would switch roles several years of government policy when diesel cars were encouraged for their environmental benefits.

Any increase in car tax or fuel duty – which is presently the same as petrol – could take effect instantly, or be deferred until the commence of the next tax year in April 2018.

The Prime Minister has suggested that taxes are unlikely to abruptly rise to draconian levels. “I’m very conscious of the fact that past governments have encouraged people to buy diesel cars and we need to take that into account,” said Theresa May, earlier this year.

The latest car tax switches, introduced in April, were drawn up before the most latest concerns over the health implications of diesel. These actually give slightly favourable treatment to diesel cars because the very first year of tax, for fresh cars is based on carbon dioxide emissions, which are usually lower from diesels (it’s other emissions that cause air quality problems). The Chancellor may determine to tweak the tax structure to liquidate the benefit.

Extra charges for diesel car drivers have been on the cards since June last year when the then-Transport Secretary, Patrick McLoughlin warned that a diesel tax surcharge was only a matter of time. There was another warning in February when Chris Grayling, the current Transport Secretary, warned motorists to hesitate before buying a diesel car. “People should take a long, hard think about what they need – about where they are going to be driving – and should make best endeavours to buy the least polluting vehicle they can,” said Grayling.

“I don’t think diesel is going to vanish but someone who is buying a car to drive around a busy city may think about buying a low-emission vehicle rather than a diesel.”

Diesel car charges in London

There are two planned charges for diesel cars in London, with the very first due to take effect this October. This initial scheme, known as the Emissions Surcharge or ‘T-Charge’ will target all cars with an engine that fails to meet older emissions standards known as Euro Four, whether they are petrol or diesel. These are generally cars that are more than a decade old, registered in in two thousand five or before.

Owners of affected cars will have to pay £10 a day to drive in central London, in addition to the £11.50 Congestion Charge, making a total daily fee of £21.50. The charging zone will be the same as the current Congestion Zone area and charges will apply during the same hours: inbetween 7am and 6pm, Monday to Friday. Historic cars that are forty years’-old or more, will not have to pay. Anyone living in the zone will get a 90% discount, so will only have to pay £1 a day.

Ultra Low Emission Zone (ULEZ)

The next stage of London’s emissions charges was due to begin in September 2020, when owners of diesel cars that fail to meet the very latest Euro six standards (most vehicles registered before September 2015) will have to pay £24 a day to drive in central London, made up of the £11.50 Congestion Charge and a £12.50 emissions surcharge.

But Sadiq Khan, London’s Mayor, has just announced that this will be brought forward to April 8, 2019. He has also proposed a vast extension of the zone. It was originally going to cover the petite central Congestion Zone area, but Khan wants to expand this to most of internal London, an area then times the size, by 2021.

Other city diesel charges

By the end of 2020, there could be twenty seven Clean Air Zones in Britain, all imposing charges on older diesel cars that are driven into city centres.

Another possibility is that there will be just one – in London. That’s because Michael Gove, the Environment Secretary, has said that he doesn’t believe that it’s necessary for polluted cities to cut emissions by charging the most polluting cars.

“Charging is a blunt instrument. I would rather use a series of surgical interventions because I think that’s fairer to drivers,” said Gove. This means that authorities will be encouraged to liquidate speed bumps to improve traffic flow, introduce a local scrappage scheme or close roads to diesel cars before introducing charges. London’s a different case, as its roads are managed by the Mayor.

However, that doesn’t mean that Clean Air Zones aren’t a threat. Gove’s own Department for Environment, Food and Rural Affairs (Defra) has said that cities with the worst-polluted roads outside of London are “well advanced” in their plans to put Clean Air Zones in place, in order to bring emissions below legal boundaries. Birmingham (above), Leeds, Nottingham, Southampton and Derby could determine to charge drivers from 2019.

These five cities could be joined by Manchester, Bristol and South Gloucestershire in 2020. They have been given grants to develop their own Clean Air Zone plans.

The measure may be needed because Defra’s Air Quality Plan states: “The Government will require local authorities to implement measures that will achieve statutory thresholds in the shortest time possible.”

A technical report for Defra found that charging is far and away the most effective method of reducing pollution to within legal boundaries. “It is clear that charging Clean Air Zones have the greatest influence by bringing the majority of zones into compliance by 2021,” it concluded.

Drivers of all but the most latest cars, which meet Euro six regulations that came into force in September 2015, are likely to be charged to inject Clean Air Zones.

The government is being coerced to take a rough treatment because it was compelled to improve its air quality plan. It goes after a High Court ruling that the original – published in two thousand fifteen – was too powerless to tackle the problem. Since then, evidence has also emerged that the latest diesel engines are generally sloppier than had been expected, which makes reducing air pollution more difficult.

Diesel surcharges for parking permits

Enlargening numbers of councils are adding extra charges to the cost of parking permits for diesel cars. Residents in Islington, North London, must pay an extra £96 per year, while the neighbouring borough, Camden. Merton, in South London is about to commence charging diesel owners £90 a year. Owners of older diesel cars in Hammersmith and Fulham, West London, will have to pay £20 a year, rising to £60 each year over two years.

Higher parking fees for diesel drivers

From June 26, drivers of diesel cars that were registered before two thousand fifteen have had to pay more to park than petrol car owners in the Marylebone area of the capital. When drivers tap in their registration number to pay for parking by phone, they will be charged 50% more than the standard £4.90 per hour fee to park – that’s a total of £7.35 an hour, or 12p per minute.

” Extra charges for diesel vehicles will mean people think twice about using very polluting cars and invest in cleaner transport that will make a real difference in the quality of air we breathe and our environment,” said David Harvey, the Westminster councillor responsible for parking.

The Council said that the scheme was being trialled in an area that it has “some of the highest pollution levels in London” and that it could be extended to other parts of the borough. It will be used to pay for a team of so-called Air Wardens, who will patrol the roads and encourage drivers to turn off their engines when they are stopped.

Heathrow emissions charge

Britain’s fattest airport has proposed an emissions charge for vehicles driving to the airport, as part of its plans to reduce the air pollution influence of a fresh, third runway. It has not yet submitted detailed plans, but diesel cars are almost certain to be affected. The plans may also include many petrol vehicles.

Should I sell my diesel car to avoid future charges and taxes?

At the moment, it’s not clear how many of the proposed schemes listed above will be imposed, exactly where they will be put in place, or which cars will be targeted.

Ministers will be aware that large family cars, including people carriers, as well as crossovers and tall, rugged SUVs are mainly powered by diesel engines. They will be reluctant to impose a raft of extra charges on this section of voters, particularly as many will have bought them for their good fuel economy and low carbon dioxide emissions – championed by government in previous years.

It means that it’s most likely not worth rushing to sell, if you’re continuing to get cheap, reliable motoring from your vehicle. However, when you come to buy your next car, you should think cautiously about the choice inbetween petrol or diesel. Buying a diesel on some types of finance can also help protect against a unexpected drop in value.

If you own a diesel car that’s going to be affected by the London Low Emission Zone (most models registered before September 2015) and you regularly drive in London, then switching it for a fresh model is likely to be worthwhile, but you’ve got until at least two thousand nineteen before the charges are introduced, which leaves slew of time to take advantage of any diesel scrappage scheme that might be announced. See below for your options.

It’s likely that parts of Southampton, Birmingham, Leeds, Nottingham and Derby will make life more difficult for diesel drivers, whether through charging or road closures but it’s unlikely to be a problem if you avoid the busy and congested parts of town. It also remains to be seen whether residents will be given any discount or scrappage scheme.

Older cars have clearly fallen out of favour but these vehicles, very first registered before 2006, are already worth a fraction of their price when fresh. If request does drop, they may lose some of their value but in most cases, there’s not a good deal to lose.

Scrappage scheme

The government has said that councils will be able to propose local scrappage schemes if they are effective and value for money, but car manufacturers have already began to act, with Ford, BMW and Mercedes among the brands to have launched their own scrappage schemes.

These typically suggest £2,000 off the cost of a brand fresh car (albeit the incentive can be higher) if you trade in an older vehicle, which usually must be more than seven years old. BMW and Mercedes limit their schemes to owners of old diesel cars but they will also pay you a trade-in price for your vehicle, which isn’t always suggested.

If local authority scrappage schemes are launched, these are likely to be concentrated in areas of high pollution and used as a way to drive the oldest and most polluting cars off the road, improving air quality in the process.

It’s a policy that has been championed by Edmund King, the AA president. “By suggesting an incentive to trade in an older car for a brand fresh one, then the government won’t lose out,” said King. “They will automatically get 20% VAT on every sale, which can almost pay for a scrappage scheme.”

How to avoid diesel taxes

Buy a petrol car

To state the demonstrable, the simplest way to avoid any diesel emissions taxes is not to buy a diesel car.

So far, few petrol cars are affected by low emission zones, as their emissions are generally cleaner. They are generally cheaper than an equivalent diesel too. Most family-sized cars suggest utterly economical petrol engines that come close to diesel-levels of fuel economy.

When it comes to stronger cars, such as tall and chunky SUVs (sport utility vehicles), opting for a petrol engine is a good way of searing through your bank account at indecent speed. Unlike diesels, they need revving to get a big car moving, which uses up a lot of fuel.

If you want a big car that’s not a diesel, then a hybrid SUV is a better bet. With a battery that can power the car for a few miles and recover energy that’s normally lost during braking, they can be enormously economical on brief journeys. Options include the smaller Toyota C-HR (below) and Mitsubishi Outlander, to the larger Volvo XC90 T8.

Hybrids can be expensive, however and diesel makes more sense if you’re covering higher mileages. Because there’s no realistic alternative for most drivers who need a large vehicle, it’s likely to mean that request for these cars proceeds, so it’s less likely (but not unlikely) that prices will plunge.

Lease or finance your next diesel car

One of the largest concerns of diesel car owners is that the value of their cars could plummet if they are abruptly subject to punitive taxes. Anyone who leases a car or has taken out PCP finance does not need to worry, as they have the option of handing the car back at the end of the agreement, no matter how much it has lost in value.

A big drop in value will reduce the options you have as a PCP customer, tho’. You could lose the chance to end your agreement early without penalty, and the car may not be worth enough to permit you to trade it in for a different model at a large discount.

Buy a diesel car with a Euro six engine.

Diesel cars still make sense – particularly drivers of larger, stronger vehicles, or those covering a high-mileage, where the power and efficiency of these engines makes them the ideal choice.

The latest emissions standards that every fresh car must conform with are called Euro 6. These require diesel engines to be considerably cleaner than the previous standard, known as Euro Five. If diesel taxes are brought in, then they may not apply to cars with Euro six engines, even however questions have been raised about the effectiveness of the regulations (see below).

There’s no assure that this will happen, but it is the policy that London is using for its Ultra Low Emissions Zone. The only diesel cars exempt from the daily charge are Euro six vehicles (the rules are less stringent for petrol cars).

Every car registered since September 1, two thousand fifteen has had to be Euro six compliant by law. Some vehicles met the standard a few months before then. Newer cars usually have the emissions standard that they meet listed on their V5C registration document. Euro six diesel cars have an harass filter to trap particulates and often inject an additive called AdBlue into the harass, which reduces emissions of NOx.

Buy an electrified car

Since April 1, the only fresh vehicles exempt from car tax have been electrified (and a handful of hydrogen-powered models). If your daily journey is typically less than eighty miles and you have somewhere that the car can be charged up overnight, then an electrified car could be ideal – with minimal fuel costs.

Avoid driving in built-up areas

It’s lighter said than done if you only have one car, but the majority of proposed diesel taxes are designed to apply to polluted towns and cities. There are no concrete plans yet to penalise diesel cars travelling on motorways, where their efficiency is most useful. Of course, there’s not much you can do if you’re travelling to a city that’s implementing a diesel tax.

What’s wrong with diesel cars?

For years, diesel cars were introduced as an environmental solution because they generally emit less carbon dioxide (CO2) for every mile that they travel than petrol cars do.

The more diesels that drivers bought, the closer the government would get to reducing emissions of this greenhouse gas to tackle global heating. And because car tax was based on CO2 emissions, the Treasury incentivised drivers to buy diesel.

It was always known that diesel cars produce higher levels of other harmful emissions, including lil’ soot fragments called particulates, which can embed themselves in lung tissue, as well as nitrogen oxide gases (NOx). That should have been addressed by regulations known as Euro six (see above). They were meant to make diesel cars as clean as petrol ones.

But faith in the Euro six regulations collapsed at around the same time when the Volkswagen ‘dieselgate’ scandal emerged. The German manufacturer had been cheating official emissions tests, which mean that its cars were producing higher levels of harmful compounds when they were driven on the road, but were within legal thresholds when tested in the laboratory.

Further investigation found that the problem was not restricted to Volkswagen. On-road tests (below) exposed that most other manufacturers also produced diesel cars that emitted far higher levels of harmful particulates and NOx when on the road than in a laboratory.

Earlier this year, some puny diesel cars were found to emit more pollution than some larger cars and even lorries. In these cases, no cheating was involved; the official European emissions test is simply not harsh enough to replicate real-world conditions.

All of this coincided with enlargening evidence that NOx and particulates were responsible for thousands of early deaths from respiratory illnesses each year. The Royal Colleges of Physicians and of Paediatrics and Child Health last year said the outdoor air pollution contributed to around 40,000 early deaths in Britain.

Latest evidence suggests some brand fresh cars are increasingly clean in real-world conditions. This may be because NOx emissions will be tested more scrupulously later this year in an official European test carried out on public roads.

But with enlargening safety concerns and regular breaches of European air quality thresholds in several British cities, the scene is set for act that will penalise drivers of diesel cars, which were once seen as the green future.

Diesel tax: proposed charges and surcharges for UK drivers, BuyaCar

Diesel tax: crackdown to cost diesel drivers more

Car makers are launching fresh diesel scrappage schemes, amid a growing threat of higher taxes and surcharges to drive diesels in certain areas.

Drivers are being suggested £2,000 or more by manufacturers including Ford, Mercedes and BMW to trade in their old diesel car for a brand fresh model that would be exempt from many of the proposed charges.

Details of the government’s crackdown on diesel cars to tackle air pollution will become clearer after this autumn’s Budget. The Treasury has confirmed that car tax rises for diesel owners or a fuel duty increase on diesel fuel are being considered. Further act against diesels is expected by next March when councils must publish plans to improve air quality in their area.

Some authorities are expected to charge owners of diesel cars to drive in the most polluted cities, in what have been dubbed toxicity charges. So-called Clean Air Zones will be set up from two thousand nineteen in parts of Birmingham, Leeds, Nottingham, Derby and Southampton, and could involve a £10-a-day toll for anyone driving a diesel car that’s more than two years old.

They would be following in the footsteps of London, which is introducing a pollution charge for older cars that are driven into the centre of the capital from October.

Other measures could include banning diesel cars from some major roads where air pollution exceeds legal thresholds, or enhancing parking charges for diesels. Westminster Council in London is already imposing a £2.45 per hour parking surcharge on diesel cars that are over two years old.

Councils will also be able to set up their own scrappage schemes, permitting local residents a discount on a fresh car if they trade in an old, dirty diesel. This would be funded from a £200m government air quality fund if authorities can prove that they are “effective and value for money”.

The diesel crackdown is part of the government’s plan to improve air quality, which fails to meet legal boundaries in eighty one different local authority areas. Michael Gove, the environment secretary, said that the plan will result in fresh conventional diesel and petrol cars being banned from sale by 2040.

The extra taxes and surcharges that drivers are facing include:

• Charging some diesel car owners to drive in the centre of London Read more
• Diesel charges in other cities Read more
• Higher car tax or fuel duty for diesel drivers Read more
• Parking surcharges for diesel cars Read more
• Enhanced cost of parking permits for diesel owners Read more

For some diesel owners, the extra charges to drive their cars could cost them thousands of pounds more a year, effectively forcing them into a newer – or petrol – car and boosting the appeal of the scrappage schemes.

Gove has already encouraged diesel owners to abandon the fuel, telling Radio Four’s Today programme last month: “We know people are moving away fairly rightly from diesel cars at the moment.”

Sales of fresh diesel cars have plummeted and second-hand values are down too, even however modern diesel cars are unlikely to be affected by many surcharges because they meet the latest emissions standards, which are known as Euro 6. These limit the levels of toxic gases and particles in harass fumes, which are thought to contribute to more than 40,000 early deaths a year.

Every fresh car sold since September two thousand fifteen has had to conform with these standards and many of those sold earlier in that year do as well. Albeit there is an ongoing debate about exactly how clean these cars are, they are unlikely to face Clean Air Zone or parking surcharges (but would be affected by a fuel duty increase).

Experts are advising diesel buyers that leasing or taking out Individual Contract Purchase Finance (PCP) ensures that you won’t have to foot the bill if your car is worth less than expected at the end of your agreement.

Inner-city emissions charges will begin later this year when London starts operating its T-Charge. Owners of older petrol and diesel cars will have to pay £10 a day to drive in the centre of the capital, which comes on top of the £11.50 Congestion Charge. It will add up to more than £100 a week for some drivers.

Birmingham, Leeds, Nottingham, Derby and Southampton will have to set up Clean Air Zones by the end of 2019, according to the Department for Environment, Food and Rural Affairs (Defra) but have not yet confirmed whether they will introduce charges or take other measures to bring air pollution levels down.

A technical report from Defra, published earlier this year, suggested that twenty seven towns and cities may have to introduce Clean Air Zones with some form of charging and the Ministry is creating a sticker for fresh and second-hand cars that will tell buyers whether a vehicle will incur charges when driven in a Clean Air Zone.

Gove claims that that diesel car tolls may not be needed. “I don’t believe that it is necessary to bring in charging,” he said recently, as he encouraged measures to improve the flow of traffic, such as removing speed bumps. However, Defra’s own figures suggest that these won’t cut air pollution as quickly as charging in many areas.

Research by BuyaCar has indicated that the diesel crackdown is having a dramatic effect. Discounts of more than a quarter are available on some almost fresh diesel cars, which can make them cheaper than the equivalent petrol model. Across the entire market, values of diesel cars is leisurely ripping off according to cap hpi, which monitors used car values.

The rock hard says that larger diesel cars, including SUVs, are expected to hold their value better than smaller vehicles, which are more suited to petrol engines.

The lower prices aren’t tempting drivers to come back to diesel, however. A BuyaCar survey earlier this year found that more than half of current diesel owners are planning to switch their car for a petrol, electrical or hybrid vehicle.

Last month, sales of fresh diesel cars dropped by 20%, compared with a 3% fall in petrol vehicles and a 65% increase in sales of electrical and hybrid cars.

Toyota has reported a surge of interest in its efficient petrol-hybrid cars, such as the Prius (below) with sales up by 40% this year.

Motoring groups warned that officials need to balance the need to improve air pollution without draconian penalties for motorists. Many drivers rely on diesel for lower-cost long-distance motoring, or to power a larger car, such as a people carrier.

“In the early 2000s, we were encouraged in this dash for diesel and Gordon Brown gave tax incentives to buy them, which meant that the proportion of diesel cars on the road enlargened substantially,” said Edmund King, president of the AA. “Many of these people live on the outskirts of urban areas and they are finding that they could be clobbered by low emissions zones or extra parking charges.

“We also need to recall that fresh diesel cars are much cleaner. If you are doing long distance journeys, then a diesel vehicle is most likely right for you because it will be more economical over a long distance. Large cars like people carriers are usually more economical with a diesel engine too.”

King’s view was echoed by the car industry trade assets, the Society of Motor Manufacturers and Traders (SMMT). “We welcome the publication of government’s proposals for improving air quality across the UK, which clearly states that the fresh Euro six diesels which have been on sale for the past two years will not face any penalty charges anywhere in the UK,” said Mike Hawes, the SMMT’s chief executive.

Proposed taxes on diesel cars

Diesel car tax increase

Philip Hammond, the Chancellor, has confirmed that the government is examining proposals to increase taxes for diesel cars ahead of this year’s Autumn Budget.

That was confirmed this week when Defra’s Air Quality Report stated: “The Government will proceed to explore the adequate tax treatment for diesel vehicles and will engage with stakeholders ahead of making any tax switches at Autumn Budget 2017.

Hammond’s options include raising fuel duty on diesel, which would make every mile driven more expensive, or adding a diesel surcharge to car tax every year. The measures, to reduce air pollution, would switch roles several years of government policy when diesel cars were encouraged for their environmental benefits.

Any increase in car tax or fuel duty – which is presently the same as petrol – could take effect instantly, or be deferred until the commence of the next tax year in April 2018.

The Prime Minister has suggested that taxes are unlikely to abruptly rise to draconian levels. “I’m very conscious of the fact that past governments have encouraged people to buy diesel cars and we need to take that into account,” said Theresa May, earlier this year.

The latest car tax switches, introduced in April, were drawn up before the most latest concerns over the health implications of diesel. These actually give slightly favourable treatment to diesel cars because the very first year of tax, for fresh cars is based on carbon dioxide emissions, which are usually lower from diesels (it’s other emissions that cause air quality problems). The Chancellor may determine to tweak the tax structure to eliminate the benefit.

Extra charges for diesel car drivers have been on the cards since June last year when the then-Transport Secretary, Patrick McLoughlin warned that a diesel tax surcharge was only a matter of time. There was another warning in February when Chris Grayling, the current Transport Secretary, warned motorists to hesitate before buying a diesel car. “People should take a long, hard think about what they need – about where they are going to be driving – and should make best endeavours to buy the least polluting vehicle they can,” said Grayling.

“I don’t think diesel is going to vanish but someone who is buying a car to drive around a busy city may think about buying a low-emission vehicle rather than a diesel.”

Diesel car charges in London

There are two planned charges for diesel cars in London, with the very first due to take effect this October. This initial scheme, known as the Emissions Surcharge or ‘T-Charge’ will target all cars with an engine that fails to meet older emissions standards known as Euro Four, whether they are petrol or diesel. These are generally cars that are more than a decade old, registered in in two thousand five or before.

Owners of affected cars will have to pay £10 a day to drive in central London, in addition to the £11.50 Congestion Charge, making a total daily fee of £21.50. The charging zone will be the same as the current Congestion Zone area and charges will apply during the same hours: inbetween 7am and 6pm, Monday to Friday. Historic cars that are forty years’-old or more, will not have to pay. Anyone living in the zone will get a 90% discount, so will only have to pay £1 a day.

Ultra Low Emission Zone (ULEZ)

The next stage of London’s emissions charges was due to begin in September 2020, when owners of diesel cars that fail to meet the very latest Euro six standards (most vehicles registered before September 2015) will have to pay £24 a day to drive in central London, made up of the £11.50 Congestion Charge and a £12.50 emissions surcharge.

But Sadiq Khan, London’s Mayor, has just announced that this will be brought forward to April 8, 2019. He has also proposed a vast extension of the zone. It was originally going to cover the puny central Congestion Zone area, but Khan wants to expand this to most of internal London, an area then times the size, by 2021.

Other city diesel charges

By the end of 2020, there could be twenty seven Clean Air Zones in Britain, all imposing charges on older diesel cars that are driven into city centres.

Another possibility is that there will be just one – in London. That’s because Michael Gove, the Environment Secretary, has said that he doesn’t believe that it’s necessary for polluted cities to cut emissions by charging the most polluting cars.

“Charging is a blunt instrument. I would rather use a series of surgical interventions because I think that’s fairer to drivers,” said Gove. This means that authorities will be encouraged to eliminate speed bumps to improve traffic flow, introduce a local scrappage scheme or close roads to diesel cars before introducing charges. London’s a different case, as its roads are managed by the Mayor.

However, that doesn’t mean that Clean Air Zones aren’t a threat. Gove’s own Department for Environment, Food and Rural Affairs (Defra) has said that cities with the worst-polluted roads outside of London are “well advanced” in their plans to put Clean Air Zones in place, in order to bring emissions below legal thresholds. Birmingham (above), Leeds, Nottingham, Southampton and Derby could determine to charge drivers from 2019.

These five cities could be joined by Manchester, Bristol and South Gloucestershire in 2020. They have been given grants to develop their own Clean Air Zone plans.

The measure may be needed because Defra’s Air Quality Plan states: “The Government will require local authorities to implement measures that will achieve statutory boundaries in the shortest time possible.”

A technical report for Defra found that charging is far and away the most effective method of reducing pollution to within legal thresholds. “It is clear that charging Clean Air Zones have the greatest influence by bringing the majority of zones into compliance by 2021,” it concluded.

Drivers of all but the most latest cars, which meet Euro six regulations that came into force in September 2015, are likely to be charged to inject Clean Air Zones.

The government is being compelled to take a harsh treatment because it was coerced to improve its air quality plan. It goes after a High Court ruling that the original – published in two thousand fifteen – was too feeble to tackle the problem. Since then, evidence has also emerged that the latest diesel engines are generally sloppier than had been expected, which makes reducing air pollution more difficult.

Diesel surcharges for parking permits

Enhancing numbers of councils are adding extra charges to the cost of parking permits for diesel cars. Residents in Islington, North London, must pay an extra £96 per year, while the neighbouring borough, Camden. Merton, in South London is about to begin charging diesel owners £90 a year. Owners of older diesel cars in Hammersmith and Fulham, West London, will have to pay £20 a year, rising to £60 each year over two years.

Higher parking fees for diesel drivers

From June 26, drivers of diesel cars that were registered before two thousand fifteen have had to pay more to park than petrol car owners in the Marylebone area of the capital. When drivers tap in their registration number to pay for parking by phone, they will be charged 50% more than the standard £4.90 per hour fee to park – that’s a total of £7.35 an hour, or 12p per minute.

” Extra charges for diesel vehicles will mean people think twice about using very polluting cars and invest in cleaner transport that will make a real difference in the quality of air we breathe and our environment,” said David Harvey, the Westminster councillor responsible for parking.

The Council said that the scheme was being trialled in an area that it has “some of the highest pollution levels in London” and that it could be extended to other parts of the borough. It will be used to pay for a team of so-called Air Wardens, who will patrol the roads and encourage drivers to turn off their engines when they are stopped.

Heathrow emissions charge

Britain’s largest airport has proposed an emissions charge for vehicles driving to the airport, as part of its plans to reduce the air pollution influence of a fresh, third runway. It has not yet submitted detailed plans, but diesel cars are almost certain to be affected. The plans may also include many petrol vehicles.

Should I sell my diesel car to avoid future charges and taxes?

At the moment, it’s not clear how many of the proposed schemes listed above will be imposed, exactly where they will be put in place, or which cars will be targeted.

Ministers will be aware that large family cars, including people carriers, as well as crossovers and tall, rugged SUVs are mainly powered by diesel engines. They will be reluctant to impose a raft of extra charges on this section of voters, particularly as many will have bought them for their good fuel economy and low carbon dioxide emissions – championed by government in previous years.

It means that it’s very likely not worth rushing to sell, if you’re continuing to get cheap, reliable motoring from your vehicle. However, when you come to buy your next car, you should think cautiously about the choice inbetween petrol or diesel. Buying a diesel on some types of finance can also help protect against a unexpected drop in value.

If you own a diesel car that’s going to be affected by the London Low Emission Zone (most models registered before September 2015) and you regularly drive in London, then switching it for a fresh model is likely to be worthwhile, but you’ve got until at least two thousand nineteen before the charges are introduced, which leaves slew of time to take advantage of any diesel scrappage scheme that might be announced. See below for your options.

It’s likely that parts of Southampton, Birmingham, Leeds, Nottingham and Derby will make life more difficult for diesel drivers, whether through charging or road closures but it’s unlikely to be a problem if you avoid the busy and congested parts of town. It also remains to be seen whether residents will be given any discount or scrappage scheme.

Older cars have clearly fallen out of favour but these vehicles, very first registered before 2006, are already worth a fraction of their price when fresh. If request does drop, they may lose some of their value but in most cases, there’s not a good deal to lose.

Scrappage scheme

The government has said that councils will be able to propose local scrappage schemes if they are effective and value for money, but car manufacturers have already commenced to act, with Ford, BMW and Mercedes among the brands to have launched their own scrappage schemes.

These typically suggest £2,000 off the cost of a brand fresh car (albeit the incentive can be higher) if you trade in an older vehicle, which usually must be more than seven years old. BMW and Mercedes limit their schemes to owners of old diesel cars but they will also pay you a trade-in price for your vehicle, which isn’t always suggested.

If local authority scrappage schemes are launched, these are likely to be concentrated in areas of high pollution and used as a way to drive the oldest and most polluting cars off the road, improving air quality in the process.

It’s a policy that has been championed by Edmund King, the AA president. “By suggesting an incentive to trade in an older car for a brand fresh one, then the government won’t lose out,” said King. “They will automatically get 20% VAT on every sale, which can almost pay for a scrappage scheme.”

How to avoid diesel taxes

Buy a petrol car

To state the visible, the simplest way to avoid any diesel emissions taxes is not to buy a diesel car.

So far, few petrol cars are affected by low emission zones, as their emissions are generally cleaner. They are generally cheaper than an equivalent diesel too. Most family-sized cars suggest enormously economical petrol engines that come close to diesel-levels of fuel economy.

When it comes to stronger cars, such as tall and chunky SUVs (sport utility vehicles), opting for a petrol engine is a good way of searing through your bank account at indecent speed. Unlike diesels, they need revving to get a big car moving, which uses up a lot of fuel.

If you want a big car that’s not a diesel, then a hybrid SUV is a better bet. With a battery that can power the car for a few miles and recover energy that’s normally lost during braking, they can be utterly economical on brief journeys. Options include the smaller Toyota C-HR (below) and Mitsubishi Outlander, to the larger Volvo XC90 T8.

Hybrids can be expensive, tho’ and diesel makes more sense if you’re covering higher mileages. Because there’s no realistic alternative for most drivers who need a large vehicle, it’s likely to mean that request for these cars resumes, so it’s less likely (but not unlikely) that prices will plunge.

Lease or finance your next diesel car

One of the largest concerns of diesel car owners is that the value of their cars could plummet if they are abruptly subject to punitive taxes. Anyone who leases a car or has taken out PCP finance does not need to worry, as they have the option of handing the car back at the end of the agreement, no matter how much it has lost in value.

A big drop in value will reduce the options you have as a PCP customer, however. You could lose the chance to end your agreement early without penalty, and the car may not be worth enough to permit you to trade it in for a different model at a large discount.

Buy a diesel car with a Euro six engine.

Diesel cars still make sense – particularly drivers of larger, stronger vehicles, or those covering a high-mileage, where the power and efficiency of these engines makes them the ideal choice.

The latest emissions standards that every fresh car must serve with are called Euro 6. These require diesel engines to be considerably cleaner than the previous standard, known as Euro Five. If diesel taxes are brought in, then they may not apply to cars with Euro six engines, even however questions have been raised about the effectiveness of the regulations (see below).

There’s no ensure that this will happen, but it is the policy that London is using for its Ultra Low Emissions Zone. The only diesel cars exempt from the daily charge are Euro six vehicles (the rules are less stringent for petrol cars).

Every car registered since September 1, two thousand fifteen has had to be Euro six compliant by law. Some vehicles met the standard a few months before then. Newer cars usually have the emissions standard that they meet listed on their V5C registration document. Euro six diesel cars have an harass filter to trap particulates and often inject an additive called AdBlue into the harass, which reduces emissions of NOx.

Buy an electrical car

Since April 1, the only fresh vehicles exempt from car tax have been electrical (and a handful of hydrogen-powered models). If your daily journey is typically less than eighty miles and you have somewhere that the car can be charged up overnight, then an electrified car could be ideal – with minimal fuel costs.

Avoid driving in built-up areas

It’s lighter said than done if you only have one car, but the majority of proposed diesel taxes are designed to apply to polluted towns and cities. There are no concrete plans yet to penalise diesel cars travelling on motorways, where their efficiency is most useful. Of course, there’s not much you can do if you’re travelling to a city that’s implementing a diesel tax.

What’s wrong with diesel cars?

For years, diesel cars were introduced as an environmental solution because they generally emit less carbon dioxide (CO2) for every mile that they travel than petrol cars do.

The more diesels that drivers bought, the closer the government would get to reducing emissions of this greenhouse gas to tackle global heating. And because car tax was based on CO2 emissions, the Treasury incentivised drivers to buy diesel.

It was always known that diesel cars produce higher levels of other harmful emissions, including little soot fragments called particulates, which can embed themselves in lung tissue, as well as nitrogen oxide gases (NOx). That should have been addressed by regulations known as Euro six (see above). They were meant to make diesel cars as clean as petrol ones.

But faith in the Euro six regulations collapsed at around the same time when the Volkswagen ‘dieselgate’ scandal emerged. The German manufacturer had been cheating official emissions tests, which mean that its cars were producing higher levels of harmful compounds when they were driven on the road, but were within legal thresholds when tested in the laboratory.

Further investigation found that the problem was not restricted to Volkswagen. On-road tests (below) exposed that most other manufacturers also produced diesel cars that emitted far higher levels of harmful particulates and NOx when on the road than in a laboratory.

Earlier this year, some puny diesel cars were found to emit more pollution than some larger cars and even lorries. In these cases, no cheating was involved; the official European emissions test is simply not harsh enough to replicate real-world conditions.

All of this coincided with enhancing evidence that NOx and particulates were responsible for thousands of early deaths from respiratory illnesses each year. The Royal Colleges of Physicians and of Paediatrics and Child Health last year said the outdoor air pollution contributed to around 40,000 early deaths in Britain.

Latest evidence suggests some brand fresh cars are increasingly clean in real-world conditions. This may be because NOx emissions will be tested more scrupulously later this year in an official European test carried out on public roads.

But with enhancing safety concerns and regular breaches of European air quality boundaries in several British cities, the scene is set for act that will penalise drivers of diesel cars, which were once seen as the green future.

Diesel tax: proposed charges and surcharges for UK drivers, BuyaCar

Diesel tax: crackdown to cost diesel drivers more

Car makers are launching fresh diesel scrappage schemes, amid a growing threat of higher taxes and surcharges to drive diesels in certain areas.

Drivers are being suggested £2,000 or more by manufacturers including Ford, Mercedes and BMW to trade in their old diesel car for a brand fresh model that would be exempt from many of the proposed charges.

Details of the government’s crackdown on diesel cars to tackle air pollution will become clearer after this autumn’s Budget. The Treasury has confirmed that car tax rises for diesel owners or a fuel duty increase on diesel fuel are being considered. Further activity against diesels is expected by next March when councils must publish plans to improve air quality in their area.

Some authorities are expected to charge owners of diesel cars to drive in the most polluted cities, in what have been dubbed toxicity charges. So-called Clean Air Zones will be set up from two thousand nineteen in parts of Birmingham, Leeds, Nottingham, Derby and Southampton, and could involve a £10-a-day toll for anyone driving a diesel car that’s more than two years old.

They would be following in the footsteps of London, which is introducing a pollution charge for older cars that are driven into the centre of the capital from October.

Other measures could include banning diesel cars from some major roads where air pollution exceeds legal boundaries, or enlargening parking charges for diesels. Westminster Council in London is already imposing a £2.45 per hour parking surcharge on diesel cars that are over two years old.

Councils will also be able to set up their own scrappage schemes, permitting local residents a discount on a fresh car if they trade in an old, dirty diesel. This would be funded from a £200m government air quality fund if authorities can prove that they are “effective and value for money”.

The diesel crackdown is part of the government’s plan to improve air quality, which fails to meet legal boundaries in eighty one different local authority areas. Michael Gove, the environment secretary, said that the plan will result in fresh conventional diesel and petrol cars being banned from sale by 2040.

The extra taxes and surcharges that drivers are facing include:

• Charging some diesel car owners to drive in the centre of London Read more
• Diesel charges in other cities Read more
• Higher car tax or fuel duty for diesel drivers Read more
• Parking surcharges for diesel cars Read more
• Enlargened cost of parking permits for diesel owners Read more

For some diesel owners, the extra charges to drive their cars could cost them thousands of pounds more a year, effectively forcing them into a newer – or petrol – car and boosting the appeal of the scrappage schemes.

Gove has already encouraged diesel owners to abandon the fuel, telling Radio Four’s Today programme last month: “We know people are moving away fairly rightly from diesel cars at the moment.”

Sales of fresh diesel cars have plummeted and second-hand values are down too, even however modern diesel cars are unlikely to be affected by many surcharges because they meet the latest emissions standards, which are known as Euro 6. These limit the levels of toxic gases and particles in harass fumes, which are thought to contribute to more than 40,000 early deaths a year.

Every fresh car sold since September two thousand fifteen has had to obey with these standards and many of those sold earlier in that year do as well. Albeit there is an ongoing debate about exactly how clean these cars are, they are unlikely to face Clean Air Zone or parking surcharges (but would be affected by a fuel duty increase).

Experts are advising diesel buyers that leasing or taking out Private Contract Purchase Finance (PCP) ensures that you won’t have to foot the bill if your car is worth less than expected at the end of your agreement.

Inner-city emissions charges will begin later this year when London embarks operating its T-Charge. Owners of older petrol and diesel cars will have to pay £10 a day to drive in the centre of the capital, which comes on top of the £11.50 Congestion Charge. It will add up to more than £100 a week for some drivers.

Birmingham, Leeds, Nottingham, Derby and Southampton will have to set up Clean Air Zones by the end of 2019, according to the Department for Environment, Food and Rural Affairs (Defra) but have not yet confirmed whether they will introduce charges or take other measures to bring air pollution levels down.

A technical report from Defra, published earlier this year, suggested that twenty seven towns and cities may have to introduce Clean Air Zones with some form of charging and the Ministry is creating a sticker for fresh and second-hand cars that will tell buyers whether a vehicle will incur charges when driven in a Clean Air Zone.

Gove claims that that diesel car tolls may not be needed. “I don’t believe that it is necessary to bring in charging,” he said recently, as he encouraged measures to improve the flow of traffic, such as removing speed bumps. However, Defra’s own figures suggest that these won’t cut air pollution as quickly as charging in many areas.

Research by BuyaCar has indicated that the diesel crackdown is having a dramatic effect. Discounts of more than a quarter are available on some almost fresh diesel cars, which can make them cheaper than the equivalent petrol model. Across the entire market, values of diesel cars is leisurely pulling down according to cap hpi, which monitors used car values.

The stiff says that larger diesel cars, including SUVs, are expected to hold their value better than smaller vehicles, which are more suited to petrol engines.

The lower prices aren’t tempting drivers to come back to diesel, however. A BuyaCar survey earlier this year found that more than half of current diesel owners are planning to switch their car for a petrol, electrical or hybrid vehicle.

Last month, sales of fresh diesel cars dropped by 20%, compared with a 3% fall in petrol vehicles and a 65% increase in sales of electrified and hybrid cars.

Toyota has reported a surge of interest in its efficient petrol-hybrid cars, such as the Prius (below) with sales up by 40% this year.

Motoring groups warned that officials need to balance the need to improve air pollution without draconian penalties for motorists. Many drivers rely on diesel for lower-cost long-distance motoring, or to power a larger car, such as a people carrier.

“In the early 2000s, we were encouraged in this dash for diesel and Gordon Brown gave tax incentives to buy them, which meant that the proportion of diesel cars on the road enhanced substantially,” said Edmund King, president of the AA. “Many of these people live on the outskirts of urban areas and they are finding that they could be clobbered by low emissions zones or extra parking charges.

“We also need to recall that fresh diesel cars are much cleaner. If you are doing long distance journeys, then a diesel vehicle is very likely right for you because it will be more economical over a long distance. Large cars like people carriers are usually more economical with a diesel engine too.”

King’s view was echoed by the car industry trade bod, the Society of Motor Manufacturers and Traders (SMMT). “We welcome the publication of government’s proposals for improving air quality across the UK, which clearly states that the fresh Euro six diesels which have been on sale for the past two years will not face any penalty charges anywhere in the UK,” said Mike Hawes, the SMMT’s chief executive.

Proposed taxes on diesel cars

Diesel car tax increase

Philip Hammond, the Chancellor, has confirmed that the government is examining proposals to increase taxes for diesel cars ahead of this year’s Autumn Budget.

That was confirmed this week when Defra’s Air Quality Report stated: “The Government will proceed to explore the suitable tax treatment for diesel vehicles and will engage with stakeholders ahead of making any tax switches at Autumn Budget 2017.

Hammond’s options include raising fuel duty on diesel, which would make every mile driven more expensive, or adding a diesel surcharge to car tax every year. The measures, to reduce air pollution, would switch sides several years of government policy when diesel cars were encouraged for their environmental benefits.

Any increase in car tax or fuel duty – which is presently the same as petrol – could take effect instantaneously, or be deferred until the commence of the next tax year in April 2018.

The Prime Minister has suggested that taxes are unlikely to abruptly rise to draconian levels. “I’m very conscious of the fact that past governments have encouraged people to buy diesel cars and we need to take that into account,” said Theresa May, earlier this year.

The latest car tax switches, introduced in April, were drawn up before the most latest concerns over the health implications of diesel. These actually give slightly favourable treatment to diesel cars because the very first year of tax, for fresh cars is based on carbon dioxide emissions, which are usually lower from diesels (it’s other emissions that cause air quality problems). The Chancellor may determine to tweak the tax structure to liquidate the benefit.

Extra charges for diesel car drivers have been on the cards since June last year when the then-Transport Secretary, Patrick McLoughlin warned that a diesel tax surcharge was only a matter of time. There was another warning in February when Chris Grayling, the current Transport Secretary, warned motorists to hesitate before buying a diesel car. “People should take a long, hard think about what they need – about where they are going to be driving – and should make best endeavours to buy the least polluting vehicle they can,” said Grayling.

“I don’t think diesel is going to vanish but someone who is buying a car to drive around a busy city may think about buying a low-emission vehicle rather than a diesel.”

Diesel car charges in London

There are two planned charges for diesel cars in London, with the very first due to take effect this October. This initial scheme, known as the Emissions Surcharge or ‘T-Charge’ will target all cars with an engine that fails to meet older emissions standards known as Euro Four, whether they are petrol or diesel. These are generally cars that are more than a decade old, registered in in two thousand five or before.

Owners of affected cars will have to pay £10 a day to drive in central London, in addition to the £11.50 Congestion Charge, making a total daily fee of £21.50. The charging zone will be the same as the current Congestion Zone area and charges will apply during the same hours: inbetween 7am and 6pm, Monday to Friday. Historic cars that are forty years’-old or more, will not have to pay. Anyone living in the zone will get a 90% discount, so will only have to pay £1 a day.

Ultra Low Emission Zone (ULEZ)

The next stage of London’s emissions charges was due to begin in September 2020, when owners of diesel cars that fail to meet the very latest Euro six standards (most vehicles registered before September 2015) will have to pay £24 a day to drive in central London, made up of the £11.50 Congestion Charge and a £12.50 emissions surcharge.

But Sadiq Khan, London’s Mayor, has just announced that this will be brought forward to April 8, 2019. He has also proposed a vast extension of the zone. It was originally going to cover the puny central Congestion Zone area, but Khan wants to expand this to most of inward London, an area then times the size, by 2021.

Other city diesel charges

By the end of 2020, there could be twenty seven Clean Air Zones in Britain, all imposing charges on older diesel cars that are driven into city centres.

Another possibility is that there will be just one – in London. That’s because Michael Gove, the Environment Secretary, has said that he doesn’t believe that it’s necessary for polluted cities to cut emissions by charging the most polluting cars.

“Charging is a blunt instrument. I would rather use a series of surgical interventions because I think that’s fairer to drivers,” said Gove. This means that authorities will be encouraged to eliminate speed bumps to improve traffic flow, introduce a local scrappage scheme or close roads to diesel cars before introducing charges. London’s a different case, as its roads are managed by the Mayor.

However, that doesn’t mean that Clean Air Zones aren’t a threat. Gove’s own Department for Environment, Food and Rural Affairs (Defra) has said that cities with the worst-polluted roads outside of London are “well advanced” in their plans to put Clean Air Zones in place, in order to bring emissions below legal thresholds. Birmingham (above), Leeds, Nottingham, Southampton and Derby could determine to charge drivers from 2019.

These five cities could be joined by Manchester, Bristol and South Gloucestershire in 2020. They have been given grants to develop their own Clean Air Zone plans.

The measure may be needed because Defra’s Air Quality Plan states: “The Government will require local authorities to implement measures that will achieve statutory boundaries in the shortest time possible.”

A technical report for Defra found that charging is far and away the most effective method of reducing pollution to within legal thresholds. “It is clear that charging Clean Air Zones have the greatest influence by bringing the majority of zones into compliance by 2021,” it concluded.

Drivers of all but the most latest cars, which meet Euro six regulations that came into force in September 2015, are likely to be charged to inject Clean Air Zones.

The government is being coerced to take a raunchy treatment because it was coerced to improve its air quality plan. It goes after a High Court ruling that the original – published in two thousand fifteen – was too feeble to tackle the problem. Since then, evidence has also emerged that the latest diesel engines are generally filthier than had been expected, which makes reducing air pollution more difficult.

Diesel surcharges for parking permits

Enlargening numbers of councils are adding extra charges to the cost of parking permits for diesel cars. Residents in Islington, North London, must pay an extra £96 per year, while the neighbouring borough, Camden. Merton, in South London is about to commence charging diesel owners £90 a year. Owners of older diesel cars in Hammersmith and Fulham, West London, will have to pay £20 a year, rising to £60 each year over two years.

Higher parking fees for diesel drivers

From June 26, drivers of diesel cars that were registered before two thousand fifteen have had to pay more to park than petrol car owners in the Marylebone area of the capital. When drivers tap in their registration number to pay for parking by phone, they will be charged 50% more than the standard £4.90 per hour fee to park – that’s a total of £7.35 an hour, or 12p per minute.

” Extra charges for diesel vehicles will mean people think twice about using very polluting cars and invest in cleaner transport that will make a real difference in the quality of air we breathe and our environment,” said David Harvey, the Westminster councillor responsible for parking.

The Council said that the scheme was being trialled in an area that it has “some of the highest pollution levels in London” and that it could be extended to other parts of the borough. It will be used to pay for a team of so-called Air Wardens, who will patrol the roads and encourage drivers to turn off their engines when they are stopped.

Heathrow emissions charge

Britain’s fattest airport has proposed an emissions charge for vehicles driving to the airport, as part of its plans to reduce the air pollution influence of a fresh, third runway. It has not yet submitted detailed plans, but diesel cars are almost certain to be affected. The plans may also include many petrol vehicles.

Should I sell my diesel car to avoid future charges and taxes?

At the moment, it’s not clear how many of the proposed schemes listed above will be imposed, exactly where they will be put in place, or which cars will be targeted.

Ministers will be aware that large family cars, including people carriers, as well as crossovers and tall, rugged SUVs are mainly powered by diesel engines. They will be reluctant to impose a raft of extra charges on this section of voters, particularly as many will have bought them for their good fuel economy and low carbon dioxide emissions – championed by government in previous years.

It means that it’s very likely not worth rushing to sell, if you’re continuing to get cheap, reliable motoring from your vehicle. However, when you come to buy your next car, you should think cautiously about the choice inbetween petrol or diesel. Buying a diesel on some types of finance can also help protect against a unexpected drop in value.

If you own a diesel car that’s going to be affected by the London Low Emission Zone (most models registered before September 2015) and you regularly drive in London, then switching it for a fresh model is likely to be worthwhile, but you’ve got until at least two thousand nineteen before the charges are introduced, which leaves slew of time to take advantage of any diesel scrappage scheme that might be announced. See below for your options.

It’s likely that parts of Southampton, Birmingham, Leeds, Nottingham and Derby will make life more difficult for diesel drivers, whether through charging or road closures but it’s unlikely to be a problem if you avoid the busy and congested parts of town. It also remains to be seen whether residents will be given any discount or scrappage scheme.

Older cars have clearly fallen out of favour but these vehicles, very first registered before 2006, are already worth a fraction of their price when fresh. If request does drop, they may lose some of their value but in most cases, there’s not a excellent deal to lose.

Scrappage scheme

The government has said that councils will be able to propose local scrappage schemes if they are effective and value for money, but car manufacturers have already embarked to act, with Ford, BMW and Mercedes among the brands to have launched their own scrappage schemes.

These typically suggest £2,000 off the cost of a brand fresh car (albeit the incentive can be higher) if you trade in an older vehicle, which usually must be more than seven years old. BMW and Mercedes limit their schemes to owners of old diesel cars but they will also pay you a trade-in price for your vehicle, which isn’t always suggested.

If local authority scrappage schemes are launched, these are likely to be concentrated in areas of high pollution and used as a way to drive the oldest and most polluting cars off the road, improving air quality in the process.

It’s a policy that has been championed by Edmund King, the AA president. “By suggesting an incentive to trade in an older car for a brand fresh one, then the government won’t lose out,” said King. “They will automatically get 20% VAT on every sale, which can almost pay for a scrappage scheme.”

How to avoid diesel taxes

Buy a petrol car

To state the visible, the simplest way to avoid any diesel emissions taxes is not to buy a diesel car.

So far, few petrol cars are affected by low emission zones, as their emissions are generally cleaner. They are generally cheaper than an equivalent diesel too. Most family-sized cars suggest utterly economical petrol engines that come close to diesel-levels of fuel economy.

When it comes to stronger cars, such as tall and chunky SUVs (sport utility vehicles), opting for a petrol engine is a good way of searing through your bank account at indecent speed. Unlike diesels, they need revving to get a big car moving, which uses up a lot of fuel.

If you want a big car that’s not a diesel, then a hybrid SUV is a better bet. With a battery that can power the car for a few miles and recover energy that’s normally lost during braking, they can be enormously economical on brief journeys. Options include the smaller Toyota C-HR (below) and Mitsubishi Outlander, to the larger Volvo XC90 T8.

Hybrids can be expensive, tho’ and diesel makes more sense if you’re covering higher mileages. Because there’s no realistic alternative for most drivers who need a large vehicle, it’s likely to mean that request for these cars resumes, so it’s less likely (but not unlikely) that prices will plunge.

Lease or finance your next diesel car

One of the fattest concerns of diesel car owners is that the value of their cars could plummet if they are abruptly subject to punitive taxes. Anyone who leases a car or has taken out PCP finance does not need to worry, as they have the option of handing the car back at the end of the agreement, no matter how much it has lost in value.

A big drop in value will reduce the options you have as a PCP customer, however. You could lose the chance to end your agreement early without penalty, and the car may not be worth enough to permit you to trade it in for a different model at a large discount.

Buy a diesel car with a Euro six engine.

Diesel cars still make sense – particularly drivers of larger, stronger vehicles, or those covering a high-mileage, where the power and efficiency of these engines makes them the ideal choice.

The latest emissions standards that every fresh car must obey with are called Euro 6. These require diesel engines to be considerably cleaner than the previous standard, known as Euro Five. If diesel taxes are brought in, then they may not apply to cars with Euro six engines, even however questions have been raised about the effectiveness of the regulations (see below).

There’s no ensure that this will happen, but it is the policy that London is using for its Ultra Low Emissions Zone. The only diesel cars exempt from the daily charge are Euro six vehicles (the rules are less stringent for petrol cars).

Every car registered since September 1, two thousand fifteen has had to be Euro six compliant by law. Some vehicles met the standard a few months before then. Newer cars usually have the emissions standard that they meet listed on their V5C registration document. Euro six diesel cars have an harass filter to trap particulates and often inject an additive called AdBlue into the harass, which reduces emissions of NOx.

Buy an electrified car

Since April 1, the only fresh vehicles exempt from car tax have been electrified (and a handful of hydrogen-powered models). If your daily journey is typically less than eighty miles and you have somewhere that the car can be charged up overnight, then an electrical car could be ideal – with minimal fuel costs.

Avoid driving in built-up areas

It’s lighter said than done if you only have one car, but the majority of proposed diesel taxes are designed to apply to polluted towns and cities. There are no concrete plans yet to penalise diesel cars travelling on motorways, where their efficiency is most useful. Of course, there’s not much you can do if you’re travelling to a city that’s implementing a diesel tax.

What’s wrong with diesel cars?

For years, diesel cars were introduced as an environmental solution because they generally emit less carbon dioxide (CO2) for every mile that they travel than petrol cars do.

The more diesels that drivers bought, the closer the government would get to reducing emissions of this greenhouse gas to tackle global heating. And because car tax was based on CO2 emissions, the Treasury incentivised drivers to buy diesel.

It was always known that diesel cars produce higher levels of other harmful emissions, including lil’ soot fragments called particulates, which can embed themselves in lung tissue, as well as nitrogen oxide gases (NOx). That should have been addressed by regulations known as Euro six (see above). They were meant to make diesel cars as clean as petrol ones.

But faith in the Euro six regulations collapsed at around the same time when the Volkswagen ‘dieselgate’ scandal emerged. The German manufacturer had been cheating official emissions tests, which mean that its cars were producing higher levels of harmful compounds when they were driven on the road, but were within legal thresholds when tested in the laboratory.

Further investigation found that the problem was not restricted to Volkswagen. On-road tests (below) exposed that most other manufacturers also produced diesel cars that emitted far higher levels of harmful particulates and NOx when on the road than in a laboratory.

Earlier this year, some puny diesel cars were found to emit more pollution than some larger cars and even lorries. In these cases, no cheating was involved; the official European emissions test is simply not harsh enough to replicate real-world conditions.

All of this coincided with enlargening evidence that NOx and particulates were responsible for thousands of early deaths from respiratory illnesses each year. The Royal Colleges of Physicians and of Paediatrics and Child Health last year said the outdoor air pollution contributed to around 40,000 early deaths in Britain.

Latest evidence suggests some brand fresh cars are increasingly clean in real-world conditions. This may be because NOx emissions will be tested more accurately later this year in an official European test carried out on public roads.

But with enlargening safety concerns and regular breaches of European air quality thresholds in several British cities, the scene is set for activity that will penalise drivers of diesel cars, which were once seen as the green future.

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