Justice secretary Jack Straw has hinted that the government may
reverse its decision to introduce increases next April to vehicle
excise duty (VED) for older and more-polluting vehicles, following
criticism in the press and unease from backbenchers.
Talking to BBC radio, Straw said: “The chancellor and the prime
minister say they are listening to public concerns [over VED rises]
and if there are going to be decisions, they could be made in the
autumn.”
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Business secretary John Hutton echoed Straw’s remarks in an
interview with BBC Radio 4. He said: “The chancellor [Alistair
Darling] is listening to what people are saying about vehicle
excise duty, as he has done on a number of occasions recently about
tax rises.
“And people are concerned about it and it is right that we
listen to people’s concerns.”
Over 40 MPs have signed a Commons early day motion which calls
for the VED increases for cars purchased between March 2001 and
March 2006 to be scrapped. Straw’s comments hinted that the VED
rises may be returned to in autumn’s pre-Budget report.
Figures obtained by the Conservatives show that nearly seven in
10 drivers will be affected by the proposed rise in VED.
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By GlobalDataCampaigning green group Friends of the Earth said that the
proposed VED changes give green taxes “a bad name”.
Motor Finance Issue: 44 – June 08
Published for the web: May 27 08 18:27
Last Updated: June 11 08 11:21
