Car finance news: government postpones road tax rises

Nov 12 2008

Unsecured Car Loans customers concerned by the cost of motoring may welcome the government's likely postponement of vehicle excise duty (VED) rises for cars bought before 2006.

Proposed changes were set to see increases for all cars on the road since 2001, but it is now expected that next week's pre-Budget Report will announce that the measures will be postponed until next year.

Andrew Davis, director for the Environmental Transport Association (ETA), said that while higher-polluting cars should face some form of punitive taxation, it is vital that green taxes are "well thought through and fair".

"It's questionable whether such a sharply-increased retrospective tax will ever be seen in that way," he added.

Almost 70 per cent of British road users would have been affected by the changes in VED, which were branded "deeply unfair" by a shadow Treasury minister.

Justine Greening told the Daily Telegraph today that Labour had taken months "to realise what we've been telling them all along - that now is no time to raise road taxes unfairly."

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