Motorists brace for road tax hike

19 March 2007

Chancellor to announce budget on Wednesday
Heaviest-polluting cars to be hit with double road tax
Idea is to encourage sales of low-polluting cars

Gordon Brown is to put up road tax on the most polluting cars to encourage people to buy green cars

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When the Chancellor of the Exchequer, Gordon Brown, announces his budget on Wednesday, it's likely that owners of the heaviest polluting cars will face substantial increases in road tax.

Cars in pollution band G, which includes many 4x4s and sports cars, could pay twice as much as they do now, according to some reports.

At the last budget, a higher rate of Vehicle Excise Duty (VED - road tax) was introduced, which meant that heavily polluting cars paid £210 per year. Now, it's possible they'll pay double - up to around £400 a year.

Instead of the increases coming in immediately, though, it is thought they will be brought in over two years.

The Chancellor is believed to want to use the tax system to encourage car buyers to choose more environmentally sound vehicles by increasing VED in this way, rather than simply pricing such cars off the road.