Policy: Extension to Vans & Lorries

Light goods vehicles are among the fastest growing components of road traffic such as the case in the UK (CfIT, 2007). The graduated VED currently does not apply to vans and lorries. There is potential to influence the purchasing behaviour and therefore rate of uptake of light goods vehicles by extending the graduated VED to vans and lorries. Moreover, as the graduated tax bands are rolled out to vans and lorries, the use of colour coded tax discs and eco-labels could also be extended to capture potential policy synergies (Anable and Bristow, 2007).