Select Committee on Public Accounts Minutes of Evidence


Memorandum submitted by the British Motorcyclists Federation

  With the DVLA claiming a 38% VED evasion rate for motorcycles (extrapolated from a recorded figure of 16%), the British Motorcyclists Federation believes that the time has come to admit that the current system for motorcycles is not fit for purpose. Although we dispute both the methodology and results of the study, if it does stand to be accurate, this indicates low public confidence in the system and that the system is unenforceable. In fact, with only 1.6 million motorcycles on the road, increasing enforcement activity would probably not be cost-effective.

  The current Vehicle Excise Duty system is incoherent with regards to motorcycles. There are currently four bands, 0-150cc, 151-400cc, 401-600cc and over 600cc. The costs for each are £15, £32, £47 and £64 respectively. This is a tax on ownership based on engine capacity (with the 151-400cc category barely used). The system for cars is classed by carbon dioxide emission which is a tax on pollution with some hybrid, electric and very low polluting vehicles exempt from any charge. Recent figures from the Department for Transport published in the Governments Motorcycling Strategy: Response to the Transport Select Committee state that even the worst polluting motorcycle is around 14% better than the new car average. In fact, a significant proportion of the motorcycle parc falls far below the 100g/km of carbon dioxide which is used as the cut off for free VED.

  Another factor that should be taken into account is usage patterns. Motorcycles are often garaged over the winter months and this means that many owners pay annual VED for three or four months use. Average mileage for a motorcycle is less than 5,000 per annum compared to 8,000 for private cars and 20,000 for company cars (Office of National Statistics). Many leisure motorcyclists travel only a few hundred miles per year and therefore the temptation for them to register the motorcycle as off the road must be very strong. This lower mileage combined with lower carbon dioxide output per mile indicates that motorcycles annually produce significantly less carbon dioxide than a car. The fact that motorcycles generally weigh a tenth of a car should also be taken into account, as motorcycles do very little damage to the road network compared to HGVs and passenger transport vehicles.

  In short, the British Motorcyclists Federation would like to see and end to VED for motorcycles as the system is incoherent, unenforceable and does not reflect usage.





 
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Prepared 22 January 2008