Manufacturers could face having to create model ranges for specific regions and even cities under a think-tank’s proposals to devolve vehicle taxation.
The Institute for Public Policy Research (IPPR) says the move may be required if the government is unwilling to go as far as needed to discourage drivers from using diesel, which it believes should be banned from cities as part of a move to diesel-free transport.
Giving control of taxation to cities with air pollution problems, such as London, would enable them to take action more quickly, rather than waiting for a national consensus on policy.
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