7:55 am, November 25, 2008
CHANCELLOR Alistair Darling focused on the car and the motorist in his pre-budget report. But what exactly did he say?
Car Dealer can reprint his words, spoken in the House of Commons, with the key policy announcements highlighted in bold…
Turning first to motorists, we rightly have a system of car taxation which takes into account the environmental impact from different types of car.
In the last Budget, I announced I was going to take this further by increasing the number of bands for Vehicle Excise Duty.
As planned, differential first year rates which people pay when they buy a new car will be introduced in April 2010.
They provide powerful incentives to purchase less polluting cars.
I intend to go ahead with the introduction of new bands, reflecting fuel efficiency.
But it would be wrong to do this in a way that places undue burdens on motorists at this time.
So I have decided to help people by phasing in new rates and lower increases.
First, in 2009, duty rates for all cars will only increase by a maximum of £5 as has been normal practice.
Second, from 2010, we will bring in differential increases in duty.
In the original proposal, some cars would have seen increases of up to £90.
Instead, I now propose that the more polluting cars will see duty increased, but up to maximum of £30.
And less polluting cars will see no increase or a cut of up £30.
