Chancellor expected to announce rethink over proposed VED banding
11 November 2008

The government has delayed its controversial plans for a vast increase in road tax.

The last budget set out a scheme for above-inflation rises in Vehicle Excise Duty (VED), described by the Chancellor Alistair Darling as a “green tax” for post-2001 cars with higher CO2 emissions.

Now the Chancellor is expected to announce a rethink of the VED rises in next week’s pre-budget report. It’s being seen as a significant climb-down.

As well as raising road tax for drivers of so-called ‘gas guzzlers’, the proposals would have stung drivers of conventional family saloons like the Ford Mondeo, with retrospective tax rises of up to £245 a year.

Any vehicles registered before 2001 with an engine displacement larger than three litres would also have been charged at the highest rate.

Although it’s likely the reforms will still apply to new vehicles, substantial rises in VED for vehicles registered between 2001-2006 are likely to be postponed for at least a year.

It’s part of the government’s effort to improve its negative opinion poll ratings and stave off a rebellion from Labour backbenchers. Experts had suggested the retrospective changes would have affected around 70 per cent of Britain’s motorists.

“We would welcome the postponement of these road tax rises,” Elizabeth Dainton of the RAC Foundation told Autocar. “We were very much against the retrospective aspect of these revisions, which caused worry and concern for motorists.”

“Reassurance for drivers and the used car market in these times of economic uncertainty has to be a good thing. But postponing this for just one year perhaps isn’t enough.”

The AA was also against the retrospective VED changes. It argued that increasing VED for post-2001 vehicles would make some cars almost impossible to sell on.

Will Powell

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Comments
12

11 November 2008

If it hadn't been for the economic down turn would this have happened?

I doubt it.

Someone in the government need a serious re-think on this situation, especially if they are still proposing bringing it back again in a years time.

 

 

It's all about the twisties........

11 November 2008

Shit my RFL was going from £35 to £20.

11 November 2008

Brown & Darling are just.............words cannot discribe. I have seen my 55 plate ST220 Mondeo drop from a value of £9000 in March to £5000 in October (px price) due mainly to the scare stories that it will cost £440 to tax it from next April. Petrol rises did play a small part I know & now I read this......... unbelievable.

Tomorrow they will be on TV saying they are doing this for working families...yeah right.

How much more damage can this Scottish mafia do.

One last thing while im on one can some one tell me why British police forces/Avon & Somerset are buying German X5's when as we know Land Rover are not in a good shape. There is nothing a road spec Range Rover Sport cant do compared to a Merc or BMW 4x4 & also its built by British workers who are British

11 November 2008

This Government really seems to be trying to maximise the "Brown bounce" - it's the only hope of getting elected again. If that means getting rid of arbitary and flawed legislation, then that's fine by me. However, I will remember come ballot box day...

12 November 2008

I''m in an odd position here, I own a car registered in 2007 with a 4.2 V8 engine, my road tax is already extremly high and the prospect of it going even higher as a penalty for driving such a 'toxic' car was frightening. I completely accept the need to produce cleaner cars and understand many peoples view that you don't need a V8 powered car to drive on todays conjested road. The thing is this car does around 2,000 miles annually, its never driven hard and therefore has a very limited impact on the environment. It satisfies my love of cars and all things mechanical. I'm already sufferering heavy depreciation but I don't think that account is taken of the other green credentials of modern cars. Like the fact that over 90% of my car will be recycled at the end of its life. Consider what goes into building a Prius and what will happen to those batteries later in life ! My daily car costs less to tax but as that covers around 15,000 miles per annum has a far greater impact in terms of its contribution to Co2 levels.

Its time that road tax was scrapped and the duty put on fuel, this way we would pay for what we use - oh but I guess the reps would have an issue with that !!!

12 November 2008

Even if this tax is scrapped completely it's all over for the big, petrol engined car. Confusion over this issue is now even worse and with no clear leadership it makes no odds if it's held back. People will shy away from cars over 225 whatever the policy mat be. The damage is done no? Of course it's good for me - I'll but a 2004 RX300 Lexus for the price of a big of crisps...

Bring back steel wheels.

12 November 2008

[quote daven2505]

One last thing while im on one can some one tell me why British police forces/Avon & Somerset are buying German X5's when as we know Land Rover are not in a good shape. There is nothing a road spec Range Rover Sport cant do compared to a Merc or BMW 4x4 & also its built by British workers who are British

[/quote]

Fair point Daven. But then the UK police seem to me to be like a spolit rich kid at Hamleys toy shop. 'I want that, that, and that, and two of those...and'

Most normal countries patronise their fellow countryman's products and therefore livelihood. The UK plod appear to have no legal requirement nor even compunction to do so. Plus their budgets, from the council tax payer, seem elastic. Whatever they want, they get. To hell with 'CPI inflation minus' basis, taking account of productivity gains as would be normal in any other private industry; no in the plod service its 'inflation plus' formula. Best enjoy while you can boys and girls - which most of them are swanning around in their Beemers, never on foot - because before too long even the UK public purse will be empty and then you'll have to whistle for your latest flash ride. Can't wait. Plod back on push bikes and his size 11s. Now if only they'd tax aviation fuel in the same way as road fuel the menace of plod in choppers would be largely curtialed too. No more hour long cop programmes of thousands of pounds an hour operating costs, multi-million pound choppers filming Darren and his mates driving their bling Novas around the council estate. Shame. Maybe ITV, BBC, CH5 will have to start making original programmes again with real acting talent.

And lastly, if UK plod will not spend British council tax payers' money on UK made products, the next level should at least be European Union products in the EU single market. So where's the sense in purchasing X5s made in America?

12 November 2008

This sucks..... many motorists have been so worried about tax rises that they have already sold their pride and joy and gone green in the hope of owning a car where the tax will be £35pa. Where do they stand? Also the value of gas guzzlers have plummetted as potential buyers have steered clear due to tax and petrol hikes. And now theres talk of fitting sat nav to each and every car so as to charge the motorist for using the roads. Correct me if I'm wrong but arn't we already paying for that ... It's called ROAD TAX!!!!

This govornment really has got it's head up it's own Ars@!!

12 November 2008

I and probably the rest of the driving nation agree with you.As for people who have to drive for a living they're company should have to stump up half to make it fair, and anyway thats only half of it , what about the "new car tax" when you buy a new car, thats another way to get money out of us all ! . No put a black box in my car by all means as long as i'm paying for the bit of road that passes under my car and no more i'm happy! and it would catch all the fuel and car tax dodgers too!

Peter Cavellini.

12 November 2008

[quote Autocar]The government has delayed its controversial plans for a vast increase in road tax[/quote] I believe that the important word above is "delayed". I can't see this government passing up the opportunity to extract more tax from the motorist in due course. I am guessing that increases in VED will be sneaked in eventually if only to offset the loss in revenue caused by people driving their cars fewer miles or buying smaller more fuel-efficient cars.


Enjoying a Fabia VRs - affordable performance

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