AM Online

Government car tax climbdown

The Government’s plan to increase vehicle duty appears to have been delayed for a year.

Changes in the budget meant from next year all cars which had been on the road since 2001 would face above inflation rises in Vehicle Excise Duty.

However The Daily Telegraph understands increases for cars bought after 2001 and before 2006 are to be delayed for at least a year, by Chancellor Alistair Darling.

Although the extra duty will apply to cars bought after this period, it is still seen as a climbdown by the Government.

The plan upset many motoring groups because the changes will mean higher vehicle duty for family cars.
 

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