The Confederation of Passenger Transport (CPT) has warned the Government that the current no deal tariff schedule will mean more harmful pollutants being released into the air. CPT made the warning in a letter to the Government’s chief no deal planner, Michael Gove MP.
The letter calls on Mr Gove to ensure that as part of an ongoing review into the no deal tariff schedule completed coaches and buses and chassis can continue to be imported from the EU tariff free. Currently tariffs of between 10% and 16% are proposed in the event of a no deal Brexit on completed vehicles, which would add tens of thousands of pounds to the cost of a new coach or bus. Around 80% of new coaches registered in the UK each year are imported and the vast majority of these are from the EU.
CPT has calculated that this could cost the coach industry an additional £32m in the first 12 months following a no deal exit.
CPT Chief Executive Graham Vidler said: “Coach operators stand to be particularly badly hit by a no deal Brexit. The proposed tariffs alongside significant uncertainty over work and travel agreements post 31 October has hit the industry hard.
“Operators want to upgrade their fleets to newer, cleaner models and there has been significant investment over the last few years but the proposed tariffs will make it unviable for many small coach operators to continue to do so.
“New vehicles often replace older models, which emit more harmful pollutants, meaning that if new vehicles become unaffordable the Government’s policy to improve air quality could stall.”
Graham Vidler continued: “There is a complete disconnect between the important policy of cleaning our air and imposing tariffs on imports of newer, cleaner coaches and buses. The Government needs to take the opportunity of this review to ensure that operators can purchase new vehicles that will help improve air quality without the additional costs imposed by a tariff.”