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SMMT 'worried' about Budget road tax changes

The Society of Motor Manufacturers and Traders has warned that today's road tax changes in Gordon Brown’s Budget 2006 send a worrying message to consumers and car makers about the future of motoring taxes.

Chris Macgowan, SMMT chief executive, said: "Stability, certainty and long-term must be the watchwords when changing sensitive tax instruments.

“None appear to have been applied here. Now the uncertainty that followed the collapse of grants for the cleanest vehicles will be mirrored by fears about a budget-by-budget bidding war on road tax changes."

The SMMT also acknowledged the reduction for lower emitting models but said many of the larger family cars and saloons (8% of the UK market) will suffer at the new top rate.

The changes will also bring more administrative pressure to manufacturers and dealers in replacing all colour-coded environmental labels in new car showrooms.

“This comes at a time when manufacturers, dealer staff and consumers are becoming more familiar with this fledgling initiative, designed to give buyers more information about CO2 emissions - and annual running costs - at the point of sale,” said the SMMT.

Macgowan added: “The media focus on VED masks the more serious issue of support for manufacturing. As cost and legislative pressures mount, we heard nothing to help ease costs, reduce the amount of red tape and drive a manufacturing sector accounting for more than 220,000 jobs to a more competitive future.”

Cars affected by new rate of tax:

This is a selection of cars, which are not 4x4s/SUVs, but whose drivers will pay the new highest rate VED.

  • BMW 130i automatic petrol: 226 g/km
  • Chrysler PT Cruiser 2.4 hatch automatic: 251 g/km
  • Citroën C5 3.0i V6 automatic petrol: 238 g/km
  • Fiat Stilo 2.4 20v manual petrol: 231 g/km
  • Ford Galaxy 2.8i CD-V6 24v manual petrol: 259 g/km
  • Honda Accord tourer 2.4i-VTEC Ex (ADAS) automatic petrol: 229 g/km
  • Mazda 6 2.3 MPS manual petrol: 245 g/km
  • Peugeot 407 SportsWagon 3.0 V6 automatic petrol: 236 g/km
  • Renault Espace 3.5V6 24v automatic petrol: 292 g/km
  • Toyota Previa 2.4 vvt-i automatic petrol: 259 g/km
  • Vauxhall Signum 2.8i V6 24v turbo manual petrol: 257 g/km
  • Vauxhall Vectra 3.2i V6 24v 5 dr hatch automatic petrol: 252 g/km
  • Volkswagen Sharan 2.0 automatic petrol: 264 g/km
  • Volvo V70 2.4 automatic petrol: 231 g/km
  • Volvo S80 T6 executive automatic: 268 g/km

    VED Band CO2 Change Petrol Diesel
    A 100g and under -£65 £0 £0
    B 101-120 -£35 £40 £50
    C 121 to 150 -£5 £100 £110
    D 151 to 165 0 £125 £135
    E 166 to 185 0 £150 £160
    F 186-225 + £25 £190 £195
    G* 226+ + £45 £210 £215
    * For new cars registered after 23 March 2006
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