Philip Webster, Political Editor
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Labour MPs backed down from a fresh revolt over the abolition of the 10p tax rate last night as the Conservatives claimed that more than two million people would lose in retrospective changes to road tax.
Assurances that Alistair Darling would attempt to compensate all the 10p losers later in the year were enough to persuade the rebels to withdraw their amendments demanding immediate action, giving much-needed relief to Gordon Brown.
But on the eve of today’s debate on vehicle excise duty (VED) the Tories published figures showing that the abolition of the 10p tax band left 1.1 million low-earners losing out by up to £112 a year.
However, changes to VED will leave more than twice as many people (2.3 million) paying up to twice as much, between £100 and £245 more.
Justine Greening, the Tory Treasury spokesman, urged Labour MPs to back her amendment today, which would stop drivers being taxed extra retrospectively. She said: “Labour’s backdated VED rises will double the pain for families struggling to cope, hitting twice as many people for up to twice as much as the 10p tax fiasco.”
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i am an mot tester and some of the worst vehicles failing their emmisions test are small cars as they are badley maintained and dont get up to their optimum working temp due to short journeys they do. i have a year 2002 transit diesal if you put ved and fuel up any more i will no longer be in a job
simon johnson, wigan, lancs
I do hope Labour see sence on this issue, what they're doing just isn't fair. Everything about it just goes against all logical thinking. 'Green tax'?... pah! Trashing old, but well running, cars to buy a brand new one is unfathomably bad for the environment. When will people realise?!!!
Ryan Miller, Bournemouth, Dorset
This "green" tax hike is fraudulent . This is because even the most ostentatious cars such as 7.5 litre V8s produce ZERO emissions until they are driven. When they are driven their owners pay tax commensurate with consumption. Double taxation is unfair. It is nothing more than a poll tax on wheels
David, North Cornwall, UK
Ok for a rep to do 50000+ miles a year in his new eco low tax car.But not ok for me doing 8000 miles a year (live in the countryside.No public transport to get to work) with my 50mpg+ car.
I pollute far far less.
There is no perspective.
People cannot afford to go to work.
Fall on your sword LABOUR
carl, lincoln,
Shush, this will hit just in time for the next election! Let Labour shoot itself in the foot (if it has any feet left!)
B James, Clifton, UK
The retrospective portion is unfair because people cannot change their behaviour to avoid the tax. Unless you're about to sell your car there is nothing you can do. The drop in 2nd hand value may also cause some to keep their cars longer.
John Goode, Welwyn Garden City, UK
I have already suffered due to the abolition of the 10% tax rate. Now I am going to be hit again for owning an older vehicle which I use to and from work. Public transport is not an option as I work night shifts, and I cant afford to replace it. But I would'nt expect any politician to understand.
chris, south molton, devon
I have already suffered due to the abolition of the 10% tax rate.Now Iam to be hit again for owning an older car which i use for work.Public transport is not an option as I work night shift.
chris, south molton, devon
This makes my Ford Mondeo worthless,what world do these MPs live in. I cannot afford to buy a new smaller car and my family would not fit in one. I have voted labour all my life I cannot wait to vote this lot OUT! Do they not realise that mortgage payments are going through the roof,petrol and food
Peter Haworth, Rayleigh, UK
I have already been hit by the abolition of 10% tax rate.Now I'm to suffer again for owning an older vehicle, I need for work.Public transport is not an option as I work nights.
chris, south molton, devon
Those people that brought high performance family cars made a choice of performace over economy, while those that thought of economy and the environment will be penalised if this tax does not go through as they won't get the savings they were expecting.
John William Riley, Colchester,
This is political suicide for Labour. Their traditional supporters will be hit hardest. Often they can only afford older cars and smaller cars of the same age are often more expensive.
They are not in a position to 'elect' to have a newer or more expensive smaller car! Also, who will buy their car?
Phil Bailey, Shrewsbury, UK
This retrospective taxation is unfair. The unintended consequence will see the scrapping of perfectly serviceable cars as owners can't afford the extra tax. Surely the carbon footprint of manufacturing a smaller new vehicle exceeds that of maintaining an existing (albeit less economical) vehicle?
AlanO, Surbiton, UK
Let them go ahead with the increase as planned. Retro tax (has any party ever had the bare faced arrogance to do this before?) will finish Labour off for good - driving most right thinking, hard working voters into the hands of the Conservatives. And why not? Labour are out of ideas and out of touch
Spencer Moore, Chalfont St Peter, Buckinghamshire
Doesn't the government get it that people are struggling with massively increased fuel, food and utility bills. This is the final straw for me. If it goes through then I am switching to the Conservatives. They may still be the nasty party but sadly they are now more in touch with people than Labour
Steve, London,
We are unable to buy food and pay electricity, gas and water bills. What's the next step? To sell up & leave the country?
SS, Liverpool,
This forth coming tax increase on VED is already hitting the wallet before it's even implemented. The car I purchased in February 2004 for £17000 has lost just under £10000 in part exchange value. Ok so it's not the most economical to run but as I only cover about 6000 miles pa it was a treat. :-(
Richard, Derby, UK