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.