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MPs gear up for car tax challenge MPs gear up for car tax challenge
(40 minutes later)
Chancellor Alistair Darling is facing a fresh challenge from MPs over plans to raise vehicle excise duty on the most polluting cars registered since 2001. MPs are to challenge controversial plans to increase vehicle excise duty on the most polluting cars later.
The Tories say 2.3m families will have to pay between £100 and £245 more each on cars which they already own. The Tories say 2.3m families will have to pay between £100 and £245 more each on cars they already own as changes apply to cars registered since 2001.
A Commons motion calling for higher rates to apply only to new cars has been signed by 49 Labour MPs. A Commons motion calling for higher rates to apply only to new cars has also been signed by 49 Labour MPs.
The challenge comes as lorry drivers prepare to stage a mass protest and lobby of MPs over fuel duty rates.The challenge comes as lorry drivers prepare to stage a mass protest and lobby of MPs over fuel duty rates.
MPs are expected to debate the vehicle excise duty plans, which the Treasury says will mean 66% of drivers will pay less or no more, from about 1240 BST with a vote due at about 1800 BST. MPs are debating the Finance Bill, which enacts the Budget, for a second day.
'End uncertainty' 'Retrospective effect'
The battle will begin just a day after the government avoided a potential revolt over the abolition of the 10p tax rate. During Tuesday's debate the focus was on the decision to abolish the 10p tax rate. The government headed off a potential revolt by promising, in the pre-Budget report, to deal with the 1.1m people who are still worse off.
About 20 Labour MPs were threatening to rebel unless there was more help for the 1.1 million low-paid people who lost out after Mr Darling's £2.7bn compensation package for the 10p tax losers. On Wednesday MPs will debate the controversial vehicle excise duty plans, which the Treasury says will mean 66% of drivers will pay less or no more. They will vote at about 1800 BST.
FROM THE TODAY PROGRAMME Hauliers head to fuel price demoFROM THE TODAY PROGRAMME Hauliers head to fuel price demo
But the rebels backed down after Treasury Minister Jane Kennedy promised the chancellor would deal with the issue in his pre-Budget report in the autumn.
On Wednesday, attention will turn to the controversial increase in vehicle excise duty (VED).
Under the plans, owners of some of the oldest cars could face a tax rise of around £200 - a move which the Conservatives and many Labour MPs say will hit poorer drivers the hardest.Under the plans, owners of some of the oldest cars could face a tax rise of around £200 - a move which the Conservatives and many Labour MPs say will hit poorer drivers the hardest.
'Fundamentally unfair'
The Conservatives have put forward an amendment to the Finance Bill to stop the tax applying to cars bought before March - when it was announced in the Budget.The Conservatives have put forward an amendment to the Finance Bill to stop the tax applying to cars bought before March - when it was announced in the Budget.
And a Labour MP's early day motion - asking the government to reconsider the "retrospective effect" of the tax - has been signed by 69 MPs, 49 of them Labour.And a Labour MP's early day motion - asking the government to reconsider the "retrospective effect" of the tax - has been signed by 69 MPs, 49 of them Labour.
FROM THE TODAY PROGRAMME 'Fundamentally unfair'
Shadow Treasury minister Justine Greening told the BBC: "Green taxes can only work at changing behaviour in the future and what the government did in its Budget this year was announce it was going to put green taxes on people who'd already bought cars up to several years ago.Shadow Treasury minister Justine Greening told the BBC: "Green taxes can only work at changing behaviour in the future and what the government did in its Budget this year was announce it was going to put green taxes on people who'd already bought cars up to several years ago.
"We think that's fundamentally unfair, Labour MPs have also signed an Early Day Motion agreeing with that. What we're trying to do today in Parliament is fix that.""We think that's fundamentally unfair, Labour MPs have also signed an Early Day Motion agreeing with that. What we're trying to do today in Parliament is fix that."
FROM THE TODAY PROGRAMME
Greenpeace executive director John Sauven has said the plan to bring in higher taxes on cars which people have already bought "gives green taxes a bad name". He believes it should just apply to new cars, rather than forcing people to pay for a choice made in the past.Greenpeace executive director John Sauven has said the plan to bring in higher taxes on cars which people have already bought "gives green taxes a bad name". He believes it should just apply to new cars, rather than forcing people to pay for a choice made in the past.
But Tim Yeo, the Conservative chairman of the Commons Environmental Audit Committee, said the principle was correct.
His committee will hold a one-off session to examine the car tax proposals on Wednesday and he said MPs would debate whether the new rates were being introduced too quickly.
Climate changeClimate change
But Tim Yeo, the Conservative chairman of the Commons Environmental Audit Committee, said while MPs would debate whether the new rates were being introduced too quickly, the principle was correct. But he told BBC Radio 4's Today programme: "Three times as many people buy a second hand car as buy a new car so if we are going to use bigger differentials in vehicle excise duty to influence car purchasing decisions they have to apply to existing second hand cars as well as new ones."
He told BBC Radio 4's Today programme: "Three times as many people buy a second hand car as buy a new car so if we are going to use bigger differentials in vehicle excise duty to influence car purchasing decisions they have to apply to existing second hand cars as well as new ones."
He urged the government to stick to its environmental agenda, saying any attempt to give motorists an "easier ride" on green taxes would be "catastrophic" for the fight against climate change.He urged the government to stick to its environmental agenda, saying any attempt to give motorists an "easier ride" on green taxes would be "catastrophic" for the fight against climate change.
A Treasury spokesman said: "Low-income families are far more likely to buy or drive cars in lower VED bands and will therefore either pay less or the same as they do now.A Treasury spokesman said: "Low-income families are far more likely to buy or drive cars in lower VED bands and will therefore either pay less or the same as they do now.
"What's more, once the reforms are fully implemented, around two-thirds of drivers will still be paying less or no more in real terms than they were in 1997."What's more, once the reforms are fully implemented, around two-thirds of drivers will still be paying less or no more in real terms than they were in 1997.
"The VED reforms will strengthen the incentive to develop and use cleaner more fuel-efficient cars and will save an additional 1.3m tonnes of CO2 by 2020.""The VED reforms will strengthen the incentive to develop and use cleaner more fuel-efficient cars and will save an additional 1.3m tonnes of CO2 by 2020."
Are you a car owner? How will the proposed raise to vehicle excise duty affect you? Send us your comments using the form below:Are you a car owner? How will the proposed raise to vehicle excise duty affect you? Send us your comments using the form below:
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