Sunday, June 15, 2008

Revolt looms over car tax hike

The number of Labour backbenchers supporting a parliamentary motion urging the government to reconsider massive increases to car tax has reached 45.

With the government only having a majority of 66, the number of rebels is now more than enough to block the scheme - if they vote in accordance with their views when it comes to the crunch.

It only takes 34 Labour MPs to vote with the opposition parties to thwart government plans.

Some rebels are likely to be bought off if the Chancellor Alistair Darling abandons plans to make the changes retrospective to cars made since 2001.

However, even the scale of the increases for very average mid-range cars made since March 2006 is likely to trigger widespread public dismay.

MPs fear the scheme could be as politically damaging as the storm over the abolition of the 10p income tax band, and even two ministers - Justice Secretary Jack Straw and Business Secretary John Hutton - have indicated that there should be a re-think.

Owners of typical family cars such as the Ford Galaxy, Vauxhall Zafira and Renault Espace will face an increase in duty of up to £245 by 2010.

Ronnie Campbell, the Blyth Valley MP who tabled the motion, said: "It's unfair that people bought their cars a few years ago not knowing that the government were going to put this road tax on.

"When you think that the 10p (tax abolition) was costing people £200 a year; the outbreak of that one was enormous. When people get their road-tax letter through the door next year and find they have an extra £200 to pay, well, I don't have to say any more, do I?"

Another signatory to the Commons motion, Angus MacNeil, SNP MP for Na h-Eileanan an Iar, said it was clear, as we have been saying since the scheme was announced, that the increase in VED had not been thought through and that Mr Darling had taken a sledgehammer to the issue.

He told The Herald: "It's going to be like the 10p tax: sooner or later they will have to do a U-turn."

In total, 62 MPs have signed the motion, with 9 Conservatives, 7 Liberal Democrats and one SNP MP joining the Labour rebels.

While such Early Day Motions have little real power, they are influential in indicating backbench opinion on a policy before it comes to a key vote in Parliament.

The government's Finance Bill incorporating the plans to is due for further consideration in Parliament
next week.


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