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LABOUR PARTY GOVERNMENT IS BEING URGED TO SCRAP OR AMEND THE EXPENSIVE CAR SUPPLEMENT, WHICH IS APPLIED TO ANY VEHICLE WHICH COSTS MORE THAN £40,000. 11:30, 05 Jun 2025 Sir Keir Starmer has

been urged to make a major car tax change - and save millions of drivers from a £3,100 charge. The Labour Party government is being urged to scrap or amend the Expensive Car Supplement,

which is applied to any vehicle which costs more than £40,000. Drivers and industry experts have warned that this could have a knock-on effect for the uptake of electric vehicles, with

motorists wanting to avoid a possible £3,100 charge. The UK’s new car market returned to growth in May, as registrations rose 1.6% to 150,070 units, according to the latest data published

today by the Society of Motor Manufacturers and Traders (SMMT). READ MORE UK FACES 32C HEATWAVE ON 'FIVE DATES' IN JUNE WITH EXACT DAY IT STARTS ANNOUNCED Mike Hawes, chief

executive of the SMMT, said: "Next week’s spending review is the opportunity for Government to double down on its commitments to net zero by driving demand through fiscal measures that

boost the market and shore up our competitiveness." Article continues below The SMMT also noted that halving the rate of VAT on new electric car purchases would lead to 267,000 new EVs

joining the road. Jon Lawes, managing director at Novuna Vehicle Solutions, added: "But let’s be clear - EV uptake is still being propped up by the industry. If Government is serious

about mass adoption, it needs to go further. "Raising the VED threshold would be a smart, targeted step - right now, too many EVs are penalised by the luxury tax, and that’s slowing

progress." Article continues below Hawes said: "A return to growth for new car registrations in May is welcome but manufacturer discounting on new products continues to underpin

the market, notably for electric vehicles." The expert went on, adding: "This cannot be sustained indefinitely as it undermines the ability of companies to invest in new product

development – investments which are integral to the decarbonisation of all road transport."