Chancellor Rachel Reeves has been urged to scrap Vehicle Excise Duty on cars over 12-years-old instead of offering more incentives to buy electric cars.
It comes after the Alliance of British Drivers argued that removing VED for older vehicles would be a more effective use of public funds than channelling money towards "relatively wealthy" new car buyers.
The ABD released a statement opposing demands by industry experts, including the Society of Motor Manufacturers and Traders, for tax cuts on new electric car purchases.
The group maintained that subsidies must be "paid for by the public in some form or other" and suggested supporting drivers struggling to maintain older vehicles represents a more sustainable approach to transport policy.
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The Alliance of British Drivers urged the Chancellor to end VED payments on older vehicles
GETTYABD Policy Director Brian Gregory explained: "Subsidies and tax cuts do not grow on trees, they have to be paid for by the public in some form or other.
"If public money is to be used to assist drivers, it should not be channelled towards the relatively wealthy who can afford new cars.
"Instead, we would be more inclined to support help for those struggling to keep their older cars on the road, which is often the most sustainable option. Scrapping VED on vehicles over 12 years old might be a better starting point."
The ABD emphasised that maintaining existing vehicles frequently represents the most environmentally sustainable choice.
The proposal to eliminate VED for vehicles over 12 years old comes as the ABD challenges what it calls "the whole net zero shambles".
The organisation pointed to international developments, noting that the US is planning to scrap all electric vehicle subsidies while the UK Government has ramped up its Zero Emission Vehicle mandate.
According to the ABD's research, keeping older vehicles on the road often proves more environmentally beneficial than manufacturing new electric vehicles.
In the group's "Cradle to Grave" report, it suggests that manufacturing a battery-powered electric vehicle creates approximately 20 tonnes of CO2 compared to as little as six tonnes for a comparable conventional vehicle.
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Rachel Reeves has been urged to stop providing electric car incentives and instead focus on helping older vehicles
Parliament TVTheir research indicates that older vehicles have already "paid off" their CO2 debt from manufacturing, making their continued use more environmentally sound than replacement with new electric vehicles.
They warned that wholesale electrification policies will "harm energy security by increasing our reliance on foreign energy sources, as well as incurring vast expense".
"By using them, drivers continue to make a significant contribution to the Treasury, and they are generally the most environmentally friendly vehicles on our roads," the ABD noted.
The organisation claims there are more than six million cars in the UK over this age threshold, with over a million historic vehicles registered.
The report by the alliance detailed how electric vehicles are costly for UK transport fleets
GETTYThe ABD also suggested comparing the costs of using internal combustion engine vehicles against "a realistic assessment of the costs required to secure electrification of the entire UK transport fleet."
The report recommended discontinuing all subsidies to renewable energy sources "as soon as is reasonably and legally practicable," arguing that if the technology is viable, it should stand alone without taxpayer-funded support.
The report claimed that an electric vehicle would need to travel up to 380,000 kilometres to break even with an internal combustion engine vehicle in terms of CO2 emissions.
"Net Zero is unaffordable, technologically regressive, it's overloaded with risk, it's economically unjustifiable when no objective Cost Benefit Analysis has been either established or published by Government," the ABD stated.
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