This month at a glance

Government direction, policy and industry lobbying

House of Lords call for action to support the transition to electric vehicles

Industry insiders and a recent House of Lords report are urging the government to reintroduce buyer incentives and improve charging infrastructure to accelerate the transition to electric vehicles.

A combination of higher purchase costs, insufficient charging infrastructure and mixed messaging are putting some people off making the switch to electric motoring, peers warned.

First MOT test to remain at three years from registration and annually thereafter

The Department for Transport (DfT) has consulted to seek views on extending the date of the first MOT for cars, vans and motorcycles and amending the detail of the MOT test. There were 4,500 respondents to the consultation and call for evidence about reforms to MOT testing.

Overall, 84% opposed changing the date of the first test, with a high volume of concerns raised in relation to road safety, especially tyre and brake wear – the most common reasons for first-time MOT test failures.

Real-time pump prices to drive down fuel costs for motorists

Consumers, retailers, and other organisations are being asked for views on the government’s proposals for the new Pumpwatch scheme which would see all fuel stations across the country legally required to share real-time price information with an organisation to be appointed by the government.

Under the new proposals, forecourts across the country will be legally required to share live information on their pump prices within 30 minutes of any change in price, which could save drivers 3p per litre on fuel by helping them find the best deal at the pump.

This freely available data will enable tech companies to develop new ways for the UK’s 41.2 million drivers to search for the cheapest fuel while on the go, via everyday mobile apps, online mapping platforms, journey planning tools, price comparison websites and in-car devices.

Double cab pick-ups to be classed as company cars from July 1

On Monday 12 February 2024, HMRC updated its guidance on the tax treatment of Double Cab Pick Ups (DCPUs), following a 2020 Court of Appeal judgment. The guidance had confirmed that, from 1 July 2024, DCPUs with a payload of one tonne or more would be treated as cars rather than goods vehicles for both capital allowances and benefit-in-kind purposes.

Since then, the government has listened carefully to views from farmers and the motoring industry on the potential impacts of the change in tax treatment. The government has acknowledged that the 2020 court decision and resultant guidance update could have an impact on businesses and individuals in a way that is not consistent with the government’s wider aims to support businesses, including vital motoring and farming industries.

HMRC announced on 20 February 2024 that its existing guidance will be withdrawn, meaning that DCPUs will continue to be treated as goods vehicles rather than cars, and businesses and individuals can continue to benefit from its historic tax treatment.