Open Letter to the Chancellor on VAT for DRT services

ITS UK has issued an open letter to the Chancellor of the Exchequer ahead of the Spring Budget.

The letter calls for a change in VAT rules, which currently mean transport authorities are incentivised to buy larger, 10+ seater vehicles for DRT schemes, as smaller, more carbon-efficient vehicles have VAT applied to fares. This makes DRT schemes more expensive for local authorities, as it means higher purchase, operation and maintenance costs, as well as reducing the environmental benefit of DRT schemes.