The cross-government Motor Insurance Taskforce published its final report in December 2025, setting out actions being taken by government, regulators and industry to help reduce premium costs. The Financial Conduct Authority's (FCA) 2025 review of motor insurance claims costs helped inform this work.

The Taskforce’s report considered the contribution of replacement vehicle costs, including credit hire, to wider motor insurance claims costs and identified actions to reduce those costs. This includes work by the FCA, the Association of British Insurers, and insurers to improve the handling of claims, reduce referrals to third parties and ensure that credit hire costs are fair for consumers.

The Government is committed to supporting motorists to transition to electric vehicles. This is why at Autumn Budget 2024, the Government announced new Company Car Tax rates for the years 2028-29 and 2029-30, which maintain generous incentives to support EV take-up. The Tax Information and Impact Note (TIIN) published alongside Budget set out the expected economic, equalities and other impacts, and highlighted that overall, the measure was expected to encourage the take-up of zero emission vehicles.

In addition, at Budget 2025, the Government announced a significant expansion of incentives to drive EV uptake, including extending the Electric Car Grant and lifting the Vehicle Excise Duty Expensive Car Supplement threshold for EVs, which will support the whole EV market.

The Government needs to balance these incentives against responsible management of public finances to ensure we have sufficient revenue to fund essential public services. A company car is a valuable benefit and therefore needs to be taxed appropriately. The Government considers P11D list prices the fairest and most practical way to calculate benefit-in-kind liabilities for company cars and has no plans to move away from this approach. However, the Government will keep the second-hand EV market under review and continue to monitor developments closely.

Both prior to and following the announcement of tax changes to the Motability Scheme at Budget 2025, the Government has engaged closely with the Motability Foundation to understand in depth how tax changes would impact the Motability Scheme and their customers.

The Department does not collect data in the format requested. The National Health Service reports on Admitted Patient Care activity in England, including the cause of a patient's attendance in hospital, as part of the Hospital Admitted Patient Care Activity record. The report details the number of attendances caused by injury from collision with pedal cyclists, and the number of pedal cyclists injured from collisions or other non-collision transport accidents. The report does not specify or separate reporting for e-bike users, including Lime bikes. The publication can be found at the following link:

https://digital.nhs.uk/data-and-information/publications/statistical/hospital-admitted-patient-care-activity/2024-25

The DfT does not hold this information.

I, too, want to see more cycling in London, and in towns and cities across the UK. Dockless cycles are one way to support that aim. We want to empower local leaders to shape shared cycle schemes so that they can deliver the greatest possible benefits and mitigate any possible issues. We will introduce local licensing regulations and guidance in the coming months.

We are seeing Lime bike leg injuries, antisocial parking, and pedestrian crossings being ignored—and one constituent of mine has even had multiple surgeries after a hit and run by a child on a hacked Lime bike. Every week the costs to the NHS and local authorities soar, while profits for the venture capitalists in California who started these companies go through the roof. I am really keen to see safer cycling in London—I am a keen cyclist myself—so will the Minister set out when the really important new regulations for the dockless e-bike sector will kick in for Londoners?

The Government is aware that, despite strong growth of the used electric vehicle (EV) market, the residual values of some EVs have depreciated more quickly than their internal combustion engine equivalents. The used EV market continues to mature, but we are aware that developments in EV technology and increasingly affordable new models have put downward pressure on used EV prices.

We are actively supporting industry-led working groups focused on the used EV market and supporting the health of the rental and leasing sectors. We will continue to work closely with industry, including the British Vehicle Rental and Leasing Association, on this.

The Government recognises the important role the fleet and rental sectors play in advancing the UK’s transition to zero emission road transport, particularly through high market share of new zero emission vehicle (ZEV) purchases and the success of ZEV adoption through salary sacrifice schemes.

To support both markets, the Government has worked closely with stakeholders to address barriers to ZEV uptake across a range of vehicle types, such as lowering upfront costs of ZEVs through grants, increasing availability of charge points, for example through the Depot Charging Scheme, maintaining beneficial tax rates, and reducing regulatory burdens on 3.5 to 4.25 tonne vans.

However, it is clear that challenges remain, including residual value risk and consumer demand in the rental sector. The Government will continue to engage closely with stakeholders to monitor the continued health of the market, ensuring the UK’s ZEV transition remains robust and competitive.

The Chancellor considers a wide range of evidence when taking decisions on tax policy.

The eVED consultation published at Budget 2025 sought views on aspects of the tax design and implementation. As part of the consultation, the government sought evidence on the impact of the proposed approach for eVED collection on fleets and leasing businesses. The consultation has now closed. The Government is analysing the responses in detail and will respond in due course.

The Government has set out the expected impacts of eVED and related Budget measures in the Budget 2025 Policy Costings document at GOV.UK. New electric car sales, of which the rental and leasing sectors comprise a significant proportion, are forecast to more than triple from nearly 0.5 million sales in 2025/26 to around 1.6 million by 2030/31. According to figures set out in the OBR’s Economic and Fiscal Outlook, the estimated overall net impact of eVED and other related Budget measures is 120,000 fewer new EV sales across the forecast period, representing only 2% of total new EV sales.

The proposed approach to electronic Vehicle Excise Duty (eVED) is designed to minimise administrative burdens by integrating mileage estimation, reporting and payment into the existing VED system, with most users expected to interact with the system once per year.

Mileage data from cars is currently collected at annual MOTs. The Government intends to use this data to ensure that user-supplied mileage is consistent and up to date. If a car is already subject to an MOT, there will typically be no additional steps for checks.

Cars under three years old are not currently required to have anannual MOT. In the eVED consultation published at Budget 2025, the Government set out the intention for these cars to attend an additional mileage check at an accredited provider around their first and second anniversary at no cost to the motorist, but welcomed views on whether these additional checks should be required.

The Government also recognised that fleets, rental and leasing businesses may require specific arrangements and sought evidence on the impact on the sector. DVLA are considering options to minimise the administrative burdens of mileage estimation and payments for these businesses, similar to VED, where bulk licensing options are available.

The Government is continuing to assess consultation responses, including those relating to the administration of eVED. In line with usual practice, the Government will publish an assessment of the administrative impact of eVED in a Tax Information and Impact Note (TIIN) alongside the relevant legislation.

It has not proved possible to respond to the hon. Member in the time available before Prorogation.

The Government’s policy is that all official travel must be efficient and cost-effective. The Department does encourage the use of electric vehicles for vehicle hire. However, short-term vehicle hires can happen at short notice and are subject to vehicle availability at the time and the policies of the hire company.

Licensing for shared cycle services will be implemented following in-depth consultation through a combination of regulations and detailed guidance.

No decisions taken yet on final policy design etc. Safety will be a priority when considering future policy in this area.

The licensing regime for shared cycle schemes which we are bringing forward through the English Devolution and Community Empowerment Bill will create a legal requirement for shared e-cycle schemes to be licensed, which will be implemented through a combination of regulations and detailed guidance, following in-depth consultation.

No final policy decisions have yet been taken, but licence conditions could include a requirement for age verification of users or public liability insurance for operators.

Safety will be a priority when considering future policy in this area.

The Government is introducing a licensing regime for shared cycle services and this will be implemented through a combination of regulations and detailed guidance, following in-depth consultation.

In the meantime, Ministers and officials continue to discuss a range of matters with e-bike rental operators, including potential measures which may be included in the future licensing framework.

Data for the Greening Government Commitments framework for 2021-25, including the Government Fleet Commitment (GFC), was collected by the Department for Environment, Food and Rural Affairs (DEFRA) and published on GOV.UK, available here: https://www.gov.uk/government/publications/greening-government-commitments-april-2021-to-march-2024-report.

Reporting for the GFC was required for in-scope vehicles only. Neither DEFRA nor the Department for Transport holds further data on vehicles that are exempted by default across Government fleets.

The Department does not currently collect data on collisions or injuries involving e-bikes operated through hire schemes.

I welcome what my right hon. Friends have been doing on public procurement. On car hire services, it is expected that around 20% of fleet industry vehicles will be electric, but less than 1% of Government purchases have been for electric vehicle hire. I know that the Government take this issue seriously, so will the Minister lay out what the Government are doing to ensure that they hire more electric vehicles?

My hon. Friend raises an important point. He is right about the reforms that we are trying to make to public procurement, and to improve our number of electric vehicles. I will write to him with the specifics on the Government Car Service.