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Darling set to back down over road tax rises
Nicholas Cecil, Chief Political Correspondent24 Sep 2008
Alistair Darling will have to water down his plans to raise road tax for millions of motorists, the Standard has been told.
A senior minister made clear that the Chancellor would face defeat in the Commons if he presses ahead with his plans for big rises in vehicle excise duty.
More than 60 Labour MPs have threatened to scupper the increases of up to £245 in annual road tax and the Government believes that, without changes to the new graduated VED system, it could not win over enough of these backbenchers to avoid it being blocked.
The Chancellor is now expected to offer concessions in his pre-Budget report later this autumn to lessen the impact of the road tax increases, particularly for people with cars up to seven years old.
The senior minister signalled that the Government now recognises the strength of opposition from Labour MPs and will therefore act to address these concerns.
The backbenchers' main complaint is the retrospective nature of the tax rises, applying to cars bought from March 2001. They have been arguing for only new cars to be affected. The Treasury today insisted that there are no current plans to change the road levy proposals but, significantly, did not rule out amendments.
A Treasury spokesman said: "Obviously all tax policies are kept under review as a matter of course. We listen to concerns that are raised."
Reader views (6)
Here we go again. Brown and Labour knew exactly what they were doing. They knew what they were doing with the 10p tax hit on the low paid and they knew what they were doing with car tax increases. In both cases they would have carried on hitting the poor but were found out and exposed by the Conservatives. Labour MPs happily stood by and accepted the changes until their jobs were threatened by public anger.
- Matt, Denbigh, 26/09/2008 00:48
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Well put Nobby:
What about the strength of opposition from the voters? Or don't our opinions count?
It appears that what the voter wants is no longer important. Time they listened to the people who pay their wages.
- Gordon, UK, 25/09/2008 12:37
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It’s an insult to the intelligence of the tax-paying electorate that the New Labour government even uses the term “green taxes” for this latest debacle. Why didn’t Gordon Brown use his speech to come clean and tell us that we’ve all got to somehow pay for a) the massive increase in welfare benefits payments to teenage single mothers b) the salaries of the 800,000 pointless public-sector jobs he has created and c) the Iraq war d) an explosion in the benefits-supported population through uncontrolled immigration. And then he could ask us; do you want to pay higher income tax or stick with the VED fiddle? If you are in a higher tax bracket, the latter is surely preferable as the former is an indirect tax that poor and modest income families he talked about will have no alternative but to pay. And there’s a big proportion of poor and modest income families in that incredible 9 million that will all have to pay up to £255 more.
- Anthony, Hailsham, 24/09/2008 20:38
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"The senior minister signalled that the Government now recognises the strength of opposition from Labour MPs"
What about the strength of opposition from the voters? Or don't our opinions count? No motorist wants this devious tax - it has driven down second-hand car prices and is imposing an even bigger burden on what is left of our income. It is not as if one penny of this extra revenue will be ring-fenced for "saving the planet" (however that can be achieved).
Perhaps this senior minister could have the guts to make himself known so that we could at least applaud one sensible-thinking member of this shower of a government?
- Nobby Clark, Perth, Scotland, 24/09/2008 14:52
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The Governments spending is out of control and because of the fact they have no real concept of money the taxpayer has to foot the bill! It is ridiculous to think that taxing people that pollute as they will spin it we carry the favour of everyone.
If our Government was a business it would have gone bust on day 2! It's a joke!
- Jp, London, 24/09/2008 11:45
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Like many people, I have a car that will be affected by these proposals but what am I supposed to do? I face a massive increase in tax if I keep it but I cannot afford to sell it as the price has crashed. Even if I did sell it, someone else would be driving it and so it does not achieve anything for the climate. What muddled thinking!
- Roger Harwood, Winchester, UK, 24/09/2008 10:32
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