Treasury under more pressure over 2p fuel hike

Hilary Benn, the Environment secretary, faces angry Labor backbenchers after
defending the government’s proposal to ramp up road taxes on the drivers of
second-hand cars.

His words will infuriate Labour backbenchers who argue that proposed
increases in Vehicle Excise Duty for high polluting cars should be cancelled for
drivers of older vehicles who have already made their purchase and can not
afford to buy a new, greener model, according to The Daily Telegraph

More than one million motorists who bought their cars between 2001 and 2006
will pay more than £400 in duty a year compared to £210 or less now. Another one
million drivers of older vehicles are estimated be hit by a 50% cent increase in
their road tax bills. The increases will be phased in and the tax on the higher
polluting cars will rise to £300 next year, followed by £430 or £455 in 2010.

‘Since three out of every four cars that is sold in the country are actually
second-hand cars, not new ones, it is important that you have a change that also
applies to the second-hand market, as it does to new cars,’ Benn said in an
interview with the BBC’s Politics Show.

Further reading:

VED raises road tax for millions of motorists

Environmental taxes overblown

The Daily Telegraph story

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