Car Tax U-Turn Imminent
There's an old adage in politics, just as in life, that when you're in a deep hole it's best to stop digging. This Government has struggled to comprehend that most fundamental principle of self-preservation. Of course, if you abruptly stop digging or start refilling the hole you run the risk of being branded indecisive, weak, ineffectual and incompetent.
Given their recent diabolical poll performances it comes as no surprise that the indecisive, weak, ineffectual and incompetent Labour Government has decided to make a u-turn on plans to retrospectively tax car owners.
Almost fifty Labour backbenchers, led by rebel Blyth Valley MP Ronnie Campbell, signed a Commons motion demanding the Chancellor had a rethink on the proposals, which would have seen Mondeo man paying up to £245 for past crimes against the environment.
Under the current system owners of the most polluting pre-2006 registered cars pay vehicle excise duty (VED) of £225 per year. Chancellor Alistair Darling's new plans would see those vehicles included on a new sliding scale of VED, rising to a maximum of £455 per year for the most polluting cars.
The Chancellor's plans would have left hundreds of thousands of old car owners with vehicles that were prohibitively expensive to run and almost worthless to sell. That didn't sit too well at all with the traditional Labour left.
Expect the retrospective element of the new VED to be dropped with the minimal of fuss in the pre-Budget report.
After an embarrassing series of blunders at the Treasury and HMRC it can't be too long before Darling's position becomes untenable. I'd give him a month.
Given their recent diabolical poll performances it comes as no surprise that the indecisive, weak, ineffectual and incompetent Labour Government has decided to make a u-turn on plans to retrospectively tax car owners.
Almost fifty Labour backbenchers, led by rebel Blyth Valley MP Ronnie Campbell, signed a Commons motion demanding the Chancellor had a rethink on the proposals, which would have seen Mondeo man paying up to £245 for past crimes against the environment.
Under the current system owners of the most polluting pre-2006 registered cars pay vehicle excise duty (VED) of £225 per year. Chancellor Alistair Darling's new plans would see those vehicles included on a new sliding scale of VED, rising to a maximum of £455 per year for the most polluting cars.
The Chancellor's plans would have left hundreds of thousands of old car owners with vehicles that were prohibitively expensive to run and almost worthless to sell. That didn't sit too well at all with the traditional Labour left.
Expect the retrospective element of the new VED to be dropped with the minimal of fuss in the pre-Budget report.
After an embarrassing series of blunders at the Treasury and HMRC it can't be too long before Darling's position becomes untenable. I'd give him a month.











