Tories ‘Have Done a U-turn’ on Vow to Ring-Fence Vehicle Tax for Road Projects

The Treasury told the PA news agency that revenue from vehicle excise duty goes into a general pot of tax receipts.

EMBARGOED TO 0001 WEDNESDAY JANUARY 24 File photo dated 03/06/22 of Vehicles on the M25 motorway near Egham, Surrey, on June 3, 2022. Steve Parsons/PA

The Treasury told the PA news agency that revenue from vehicle excise duty (VED) goes into the Consolidated Fund—a general pot of tax receipts—despite promising to launch a new National Roads Fund (NRF) in 2020.

It insisted VED “is being reinvested” into road schemes.