18-06-03

Money lost in Road Tax evasion ‘enough to double road repair fund’ – Barrett

John Barrett MP, Scottish Liberal Democrat Spokesperson on Cross-Border Transport, today released new figures which show that the money lost from vehicle excise duty evasion in Scotland is now enough to double the Scottish Executive's national road repairs fund.

Answers to parliamentary questions tabled by Mr Barrett to the Department of Transport show that over 126,000 vehicles illegally failed to pay vehicle excise duty (VED) in 2002/03, compared to 118,000 in 2001/02 and 107,000 when Labour came to power in 1997.

The total cost in terms of lost revenue this year stands at £13.6 million compared to £12.5 million in 1997. 

This money is enough to almost double the £15 million which the Scottish Executive made available to local authorities earlier in the year for road repairs as part of their national road repairs strategy.

In a statement, John Barrett said:

"These figures show that despite recent Government initiatives, VED evasion is getting worse rather than better.  In Scotland alone, the practice is costing the country tens of millions of pounds in the way of lost revenue.

"Despite the introduction of 'sting ray' cameras to try and tackle the problem, the Westminster Government is clearly losing the battle against this most basic of tax evasion.  £13.6 million is now a huge sum to lose in lost revenue, which if recouped and made available north of the border, would allow the Scottish Executive to almost double the money which they recently provided for local road repairs."

ENDS

Notes to Editors

The following answers were received John Barrett from the Department of Transport.

John Barrett: To ask the Secretary of State for Transport how many instances there were of vehicle excise duty evasion in Scotland, broken down by local authority, in each year since 1997. [119706]

Mr. Jamieson: The figures for number of instances of VED evasion in Scotland for the years in question are as follows:

Estimated evasion in Scotland	Revenue evaded (£ million)
1997-98	12.5
1998-99	13.2
1999-2000	12.6
2000-01	13.1
2001-02	13.4
2002-03	13.6

The information requested as to breakdown by local authority could be obtained only at disproportionate cost.