Currently reading: VED plans under attack again
Former transport minister attacks governments car-tax hike plan

The government's car-tax hike plan has been attacked by a former transport minister.

Stephen Ladyman, who served as minister of state for transport from May 2005 to June 2007, criticised the car while addressing a meeting at the Labour party conference. The VED tax hike is "unfair because it is retrospective and politically unwise because it hits our heartland of Labour voters," said Ladyman.

"We need the co-operation of drivers if we're going to get people's behaviour to change," he later told Autocar.Ladyman was inside government in the Department for Transport when plans to beef up the link between VED and carbon emissions was first mooted.

"We told the Treasury that an increase of a few hundred pounds wouldn't affect buyers when they chose the car," he said.Instead the proposal, which is retrospective on cars registered after 2001, has damaged used car values, rendering the average five or seven-year old family hatchback, MPV and 4x4 worthless overnight.

On older, cheaper cars the proposed tax hike forms a much bigger part of the car's running cost.

"That's what I can't understand about this proposal - the people most affected are mostly Labour voters," said Ladyman. "We've got the basic politics in this wrong."

Julian Rendell

Join the debate

Comments
2
Add a comment…
P1MUY 29 September 2008

Re: VED plans under attack again

I thought it was post March 2001, not cars registered after 2001, which implies 1st Jan 2002 onwards.


ordinary bloke 27 September 2008

Re: VED plans under attack again

No great surprise there then - a former government minister admitting that he only thinks they should do the sensible thing because it primarily affects his own party's supporters, no thoughts about what might be good for the general populace etc. Sounds pretty much like what seems to motivate all their policies.