Government VED plans to be slammed by MPs

Government VED plans to be slammed by MPs

Government plans to increase Vehicle Excise Duty on millions of cars already on the road face criticism from MPs next week

Members of the House of Commons Environmental Audit Committee are expected to attack ministers over the retrospective increases in VED due to hit nine million motorists from April next year.

Many cars registered after 2001 face increases in road tax, a move ministers say will encourage motorists to change their cars for less polluting models.

However, it is believed that the retrospective aspect of the VED plan has split the Labour-majority committee, with several members backing a sharply critical ‘minority report’.

During its inquiry, the committee heard evidence from motoring groups and environmental campaigners that increasing road tax on existing cars would do little to alter motorists’ behaviour and may unfairly penalise poorer drivers who cannot easily change cars.

More than 50 MPs have publicly opposed the retrospective aspect of the plans, and the committee’s criticism will only add to press on Chancellor of the Exchequer Alistair Darling to bring forward concessions widely expected in the Pre-Budget Report in the autumn.

One committee member said: “Even those of us who support the idea of green taxes have problems with the way this has been done. The Government has made a complete mess of this and jeopardised public trust in the whole principle of green taxation.”

Commons select committees usually try to reach unanimous conclusions on reports and divisions among members are rare. The report will be published on Monday (August 4).

(Daily Telegraph)