It seems there may be a minor reprieve on the horizon for Britain’s hard-hit motorists after the Daily Telegraph disclosed that Chancellor Alistair Darling will delay changes to Vehicle Excise Duty for at least a year in his pre-Budget report.
The Government had faced widespread criticism for proposing a “retrospective tax”, which would see above-inflation rises for all cars on the road since 2001, as it penalises decisions that may have been made seven years ago. It has been dubbed a green car tax as it targets gas guzzling vehicles.
However, some leading industry analysts have warned that the delay will offer little comfort to cash-strapped motorists.
Speaking to the Daily Telegraph, Edmund King, president of the AA, commented the delay may mean the tax is now introduced when Britain is firmly locked in a recession – meaning that ordinary families who will find it difficult to buy new cleaner cars, won’t be able to sell their old ones either.
In addition, Mr King highlighted that the Department of Transport has still not produced an analysis on how the tax change would positively impact the environment, describing it as “not a green tax, but a mean tax”. The Conservatives meanwhile, have described the decision as humiliation for the Government.
What do you think of the green car tax proposals? Should they be implemented now, delayed or scrapped altogether? Leave a comment with your thoughts.
