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Poorer drivers 'hit hard' by tax | Poorer drivers 'hit hard' by tax |
(10 minutes later) | |
The government is coming under mounting pressure from hauliers and its own MPs to change its mind on measures that threaten to raise the cost of driving. | The government is coming under mounting pressure from hauliers and its own MPs to change its mind on measures that threaten to raise the cost of driving. |
The Labour MPs say poorer motorists will suffer most from plans to increase road taxes on more polluting cars. | The Labour MPs say poorer motorists will suffer most from plans to increase road taxes on more polluting cars. |
Road hauliers are also angry that fuel duty is set to rise by 2p this autumn. | Road hauliers are also angry that fuel duty is set to rise by 2p this autumn. |
But environment minister Joan Ruddock said that while she sympathised with motorists, the government "could not lose sight of the environment agenda". | But environment minister Joan Ruddock said that while she sympathised with motorists, the government "could not lose sight of the environment agenda". |
What we can't do is lose sight of the environment agenda because this is everybody's future, the future of the planet Joan Ruddock, Environment Minister | What we can't do is lose sight of the environment agenda because this is everybody's future, the future of the planet Joan Ruddock, Environment Minister |
The MPs say they are concerned about the potential impact of a planned change in vehicle excise duty (road tax) which will see drivers paying more for more polluting cars registered since the end of 2001. | |
So far 35 Labour MPs have signed a motion calling on the Treasury to think again about the retrospective aspects of the policy. | So far 35 Labour MPs have signed a motion calling on the Treasury to think again about the retrospective aspects of the policy. |
They plan to warn the chancellor, when Parliament returns next week, that the government could lose votes over the issue. | They plan to warn the chancellor, when Parliament returns next week, that the government could lose votes over the issue. |
Increase 'unfair' | Increase 'unfair' |
Labour MP Ronnie Campbell told the BBC: "The increase is unfair to people who bought their cars a year ago, not knowing that the government was going to put that road tax on." | Labour MP Ronnie Campbell told the BBC: "The increase is unfair to people who bought their cars a year ago, not knowing that the government was going to put that road tax on." |
He said the government was in danger of making the same sort of mistake as when it abolished the 10p income tax rate, and was accused of penalising poorer families. | He said the government was in danger of making the same sort of mistake as when it abolished the 10p income tax rate, and was accused of penalising poorer families. |
Mr Campbell also called on the government to think again on plans to raise the cost of fuel duty by 2p from the autumn. | Mr Campbell also called on the government to think again on plans to raise the cost of fuel duty by 2p from the autumn. |
He said: "Fuel is already £5 a gallon in some places...the chancellor needs to cancel the 2p rise. | He said: "Fuel is already £5 a gallon in some places...the chancellor needs to cancel the 2p rise. |
"It's a tough one for the environmentalists, but unfortunately people at this time can't afford it." | "It's a tough one for the environmentalists, but unfortunately people at this time can't afford it." |
UK road haulier companies are also warning of dire consequences if the planned 2p rise goes ahead. | UK road haulier companies are also warning of dire consequences if the planned 2p rise goes ahead. |
Special exception | Special exception |
Haulage company boss Peter Carroll told the BBC that fuel prices were increasing "almost daily" and that British companies could be driven out of business. | |
He called on the government to make a special exception and give a fuel duty rebate to operators of "essential vehicles". | |
Ms Ruddock said the government had already shown sympathy for motorists by delaying the 2p increase in fuel duty until the autumn. | Ms Ruddock said the government had already shown sympathy for motorists by delaying the 2p increase in fuel duty until the autumn. |
She said the environment would benefit from the plan to increase road taxes on more polluting cars. | She said the environment would benefit from the plan to increase road taxes on more polluting cars. |
The changes, due to come into effect next year, will mean cars will be put in one of 13 bands from A to M, based on their carbon emissions. | |
Owners of the most polluting cars in band M will pay £440 in tax. And from April 2010, people buying the most polluting cars would pay a one-off "showroom tax" of up to £950. | |
Ms Ruddock added: "What we can't do is lose sight of the environment agenda because this is everybody's future, the future of the planet." | Ms Ruddock added: "What we can't do is lose sight of the environment agenda because this is everybody's future, the future of the planet." |
She denied the retrospective aspect of the policy was unfair. "Over a 10 year period...I think the direction we have been going in has been clear to people at the time," she said. | She denied the retrospective aspect of the policy was unfair. "Over a 10 year period...I think the direction we have been going in has been clear to people at the time," she said. |