Car News

Increasing vehicle excise duty (VED) may have only a limited impact upon the kind of new and used cars motorists choose to drive, according to a group of MPs.

The environmental audit committee claimed the government's plans to increase road tax will have "little benefit" for the environment, the Daily Telegraph reports.

Meanwhile, Car Finance customers may be interested to know that the committee suggested the Treasury is uncertain as to how increasing VED will influence the behaviour of the UK's motorists.

The committee said it was "disappointed" the Treasury had apparently failed to consider "what impact rebanding of existing cars will have on carbon emissions".

"Presumably this means the Treasury does not have any idea of what levels of VED will either persuade people to trade in their existing cars sooner than they would otherwise, or choose a more efficient model when they next come to buy a second-hand car," it commented.

The Treasury has risked "political opposition" for a measure which is unlikely to offer significant environmental benefits, it added.

In other environmental motoring news, Car Loans customers may be interested to learn energy firm E.ON has renewed a contract with Ford, which will see 2,000 vans and cars added to its existing fleet.

The firm said "environmental performance" was a key factor in deciding which vehicles to use.

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