Gas-guzzlers bear Budget’s brunt
by Simon Handby in Your car on 12.03.08
You could almost hear a collective sigh of relief this morning, as the nation’s put-upon motorists awoke to news that April’s 2p hike in fuel duty was on hold for six months.
This was Budget day, though, and any celebration by 4×4 owners quickly fizzled out at lunch, when the chancellor announced a massive £950 ’showroom tax’ for the most polluting new cars.
Under the scheme, cars emitting more than 255g/km of carbon dioxide will be hit with a £950 purchase supplement in the first year of registration. £455 of this will be vehicle excise duty (VED, or road tax), which will continue beyond the first year.
Although it’s grim news for owners of the most powerful cars, it’s not all great for the rest of us. Any car producing more than 160g/km of CO2 will be subject to a ’supplement to VED’ from 2009, adding further to the costs of driving.
Cleaning up
There is some good news for motorists, though – from 2010, owners of the cleanest cars, emitting less than 130g/km, will pay no road tax.
Of course, encouraging people to buy such clean cars will help reduce the damage that driving does to the environment but, frustratingly, there’s no indication that the money raised from other motorists will be invested in greener transport schemes.
If you are looking to buy a new car, the government’s Act On CO2 website lists the 10 cars that produce the least CO2 in their class. Meanwhile, in this roundup, the Guardian sums up the less than enthusiastic response to Mr Darling’s first Budget from green charities.
IMAGE by Flickr user nxb
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