Darling forced to change gear over car tax plans
Published Date:
29 June 2008
By Kate Foster
LABOUR has been forced to scrap its plans for a costly hike in car tax that would have affected millions of motorists.
Chancellor Alistair Darling yesterday backed down on the issue to head off a backlash by Labour MPs. Darling said he would reconsider a 'green tax' plan to increase vehicle excise duty retrospectively on cars bought before 2001.
The proposals would have left 18 million drivers facing above-inflation rises for car tax. Ministers are said to be concerned that the Government was antagonising motorists at a time when households are facing soaring petrol and food prices.
The tax plan will be debated in the Commons on Wednesday, but almost 50 MPs have signed a motion calling on ministers to "reconsider" charging drivers retrospectively.
Darling has privately assured MPs that he will listen to their concerns.
Under the changes, almost 70% of drivers would pay up to £245 a year more to license a family car. Those buying a brand new vehicle would be charged a levy of £950.
The full article contains 179 words and appears in Scotland On Sunday newspaper.
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Last Updated:
28 June 2008 7:40 PM
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Source:
Scotland On Sunday
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Location:
Scotland