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Darling 'listening' over road tax Speculation over road tax rethink
(about 1 hour later)
Alistair Darling "is listening" to concerns over plans to increase road tax on older, more polluting cars, Business Secretary John Hutton says. Speculation is mounting about a rethink of plans to increase road tax after ministers insisted Alistair Darling "is listening" to concerns on the issue.
The chancellor is being urged by a number of Labour backbenchers to reconsider the proposal, saying it will leave poorer families worse off. Business Secretary John Hutton said the chancellor was listening as he had done "recently" on other tax rises, in an apparent reference to the 10p tax row.
They fear it could lead to a political row similar to that over 10p tax. And Jack Straw said "if there are going to be decisions announced" they would come in November's pre-Budget report.
The Tories say there will have to be a U-turn. Greenpeace also condemned the plan to increase tax retrospectively. The Tories, at least 35 Labour MPs and Greenpeace oppose the road tax rise.
Executive director John Sauven said: "It's the kind of measure that gives green taxes a bad name because it does not change behaviour." Greenpeace executive director John Sauven said the plan to bring in higher taxes on cars which people have already bought "gives green taxes a bad name".
He said the new higher road tax rates for the most polluting cars should only apply to new cars. He said higher road tax for the most polluting cars should only apply to new cars, so people could buy a greener car - rather than being forced to pay for a choice made in the past.
Obviously the chancellor is listening to what people are saying about vehicle excise duty, as he has done on a number of occasions recently about tax rises John HuttonBusiness SecretaryObviously the chancellor is listening to what people are saying about vehicle excise duty, as he has done on a number of occasions recently about tax rises John HuttonBusiness Secretary
Owners of some of the most polluting cars could face a tax rise of as much as £200 - a move which the Conservatives say will hit poorer drivers the hardest.Owners of some of the most polluting cars could face a tax rise of as much as £200 - a move which the Conservatives say will hit poorer drivers the hardest.
Shadow chancellor George Osborne said the government would be "foolish" to go ahead with the plan at a time when "families are feeling the rising cost of living".Shadow chancellor George Osborne said the government would be "foolish" to go ahead with the plan at a time when "families are feeling the rising cost of living".
He said the Conservatives had consistently opposed the measure and said that "everyone knows" there will have to be a U-turn.He said the Conservatives had consistently opposed the measure and said that "everyone knows" there will have to be a U-turn.
One Labour MP says the government risks alienating "Mondeo man" - the name given in the past to middle-income voters Labour needed to woo if it wanted to defeat the ConservativesOne Labour MP says the government risks alienating "Mondeo man" - the name given in the past to middle-income voters Labour needed to woo if it wanted to defeat the Conservatives
Mr Hutton says people affected by the rise in road tax could always make a different choice about the next car they buy. Mr Hutton told BBC Radio 4's Today programme: "Obviously the chancellor is listening to what people are saying about vehicle excise duty, as he has done on a number of occasions recently about tax rises."
"Obviously the chancellor is listening to what people are saying about vehicle excise duty, as he has done on a number of occasions recently about tax rises," he told BBC Radio 4's Today programme.
"It's right that we listen to people's concerns."
However, he would not be drawn on suggestions that this disquiet might lead to a government U-turn on the road tax rise - similar to that which followed the abolition of the 10p tax rate.
Hauliers' protestHauliers' protest
Instead he said that owners of 24 out of the 30 most popular models would pay less road tax than they do now. He said owners of 24 out of the 30 most popular models would pay less road tax than they do now.
"We're trying to get this balance right, between encouraging choices to go green, but not hammering people," he said."We're trying to get this balance right, between encouraging choices to go green, but not hammering people," he said.
Mr Darling was also "taking into account" protests by hauliers in central London and along the M4 in Wales about the soaring cost of fuel, he said. And Mr Straw, the justice secretary, appeared to hint at a possible rethink, when he was interviewed on BBC Radio 4's The World at One.
Lorry drivers say diesel prices topping 120p a litre, plus a planned 2p fuel tax rise, will drive firms out of business. They are demanding an "essential user" duty rebate for HGV drivers. He said: "This is not due to come into force until next April and the chancellor and the prime minister have said quite explicitly we are listening to public concerns about this and if there are going to be decisions announced they could be announced in the Autumn statement."
Mike Presneill, of Transaction 2007, who is helping organise the Kent to London protest, said: "Fuel is rocketing. The government has the power to act but appears not to be listening. Hundreds of UK transport firms are being driven to the wall."
'Biggest challenge''Biggest challenge'
Meanwhile, in a speech Mr Hutton told the British Antarctic Survey conference in Cambridge, that the only effective way to insulate oil consuming countries from future price rises was energy efficiency and substitution.Meanwhile, in a speech Mr Hutton told the British Antarctic Survey conference in Cambridge, that the only effective way to insulate oil consuming countries from future price rises was energy efficiency and substitution.
He said the need to deal with climate change, plus the surging demand for energy from the emerging economies of Asia, "present the biggest challenge to global energy systems since the oil price rises of the 1970s".He said the need to deal with climate change, plus the surging demand for energy from the emerging economies of Asia, "present the biggest challenge to global energy systems since the oil price rises of the 1970s".
"There are steps that we can and must take to increase the supply of oil in the short to medium term - encouraging greater investment, transparency of data of production and supplies," he said."There are steps that we can and must take to increase the supply of oil in the short to medium term - encouraging greater investment, transparency of data of production and supplies," he said.
"But in the long term the only effective way to insulate ourselves and other oil consuming countries from future oil price spikes is energy efficiency and substitution.""But in the long term the only effective way to insulate ourselves and other oil consuming countries from future oil price spikes is energy efficiency and substitution."
He told the BBC Mr Darling was also "taking into account" protests by hauliers in central London and along the M4 in Wales about the rising cost of fuel.
Lorry drivers say diesel prices topping 120p a litre, plus a planned 2p fuel tax rise, will drive firms out of business. They are demanding an "essential user" duty rebate for HGV drivers.