FAMILY CAR DRIVERS ON ROAD TO RUIN WITH CHANCELLOR'S TAX GRAB - GIDLEY

8.00.00am BST (GMT +0100) Thu 26th Jun 2008

City and County MP Sandra Gidley today hit out at Alistair Darling after figures revealed by the Liberal Democrats showed that drivers of family saloons like the Ford Mondeo, that were registered between March 1st 2001 and 23rd March 2006, will have to pay over double the current rate of Vehicle Excise Duty (VED) by 2010. This would rake in around £20million from Hampshire drivers, and another £1.6 million from Southampton drivers on current figures, hitting local families already feeling the pinch of the credit crunch.

Under new Treasury plans, increases on vehicles currently in Band F (187 - 226g/km carbon dioxide emissions) will see VED rise from £210 this year to £300 in 2009 and as much as £430 in 2010. Band G (over 226g/km in carbon dioxide emissions) could see rises from £400 this year up to £440 in 2009 and even £455.

Sandra is writing to the Chancellor, Alistair Darling, to explain the effect of retrospective VED rises on older vehicles for essential family car users on tight budgets. She said the new tax grab was unfair, would do nothing to help the environment, and gave green taxes a bad name.

Commenting, Sandra said:

"Owners of many family vehicles, including the popular Ford Mondeo, will see the cost of their tax disc rocket to more than double the current rate over the next two years. This will do nothing to change people's driving habits, but it will make a big hole in the pockets of hard working families across Southampton and Hampshire.

"Those who rely on older vehicles for essential transport are already feeling the pinch from increased fuel prices and the higher cost of living. Many simply cannot afford to buy a cleaner, more fuel efficient model at the present time.

"The Liberal Democrats recently announced new transport policy, which would see green taxes only apply to newly bought cars. This would mean people are not left with the choice of paying an extortionate amount of tax, or having to find the money to buy a new car. The government's tax hikes are penalising people for old decisions in the guise of being green.

"Raising VED duties on the most polluting NEW vehicles can change people's purchasing habits, but a retrospective rise on older vehicles is nothing more than a cynical ploy to help fill the treasury coffers."

ENDS