Q: Will the Government consider much higher rates of tax for cars with high emissions to encourage use of more efficient vehicles?
Cars with carbon dioxide emissions over 250g/km could pay £500 pa, over 300g/km £1000 pa, and over 350g/km £2500 pa. This would penalise owners of gas-guzzlers, without hitting owners of more efficient vehicles.
Adrian Blanchard, Nottingham
SL: The Chancellor keeps all taxation policy under review, and considers all relevant environmental, social and economic factors as part of the Budget process.
There are already incentives to encourage the use of more environmentally friendly vehicles. To help consumers make informed choices, the Government launched a series of colour coded energy efficiency labels for new cars last year.
Now in over three-quarters of showrooms, these help get a variety of information across, such as how fuel efficient a particular vehicle is, how much motorists can expect to pay in terms of fuel bills, and whether it qualifies for a reduction in Vehicle Excise Duty.