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Car Tax Rises


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The word on the street is that the increases in road tax will be postponed this afternoon in the pre-budget report.

Obviously everyone here would like that to be the case - but what do the panel think will actually happen?

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BBC is quoting the chancellor as saying "the new vehicle excise duty bands will be phased in. The maximum increase next year will be £5".

So it's quite likely it won't happen at all then, given that Labour will likely get booted out by 2010.

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Yes, those figures are correct. The new bands will be introduced, but the 2001-2006 cars will be capped at band K no matter what their emissions, in much the same way as they are capped at band F now.

The real point of putting it back for as long as they have is that it allows them to move it onto an 'election manifesto' platform rather than a 'you will pay this now' platform. That will give it much more of an air of legitimacy because the government (ie the Labour party) will be able to say 'this is what we said would happen if we were voted back into power'.

I'm quite happy with that, to be honest. If they are voted back in, people can't complain. If they are not voted back in, it won't happen as the Tories have categorically stated that in their eyes it is an unfair and retrospective measure.

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