Darling: No car tax U-turn

Time 13 years ago

Chancellor signals fuel duty retreat but no U-turn on VED rises


THE Chancellor of the Exchequer Alistair Darling has signalled he plans to retreat over the planned 2p a litre rise in fuel duty – but there is unlikely to be any U-turn over controversial rises in Vehicle Excise Duty due in April next year.


The VED rates, which will drastically affect car dealers as they attempt to sell cars in complicated tax brackets, have been a real bone of contention to the government.



The Chancellor has pledged to make a statement on the 2p a litre duty rise before October, prompting immediate speculation that with petrol and diesel pump prices at record levels the increase will be postponed.


But he is sticking to his guns on VED despite almost 50 Labour MPs signing a motion voicing their concerns at the planned increases. Darling is set to meet the MPs next week.


‘Vehicle Excise Duty’s been linked to how polluting a car is since the beginning of the decade and I believe it is right we should encourage people to use less polluting cars,’ said Darling.

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