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Car makers demand VED changes

  • Industry fears VED road tax changes
  • Government asked to postpone amendments
  • Road tax bills could double
Words By What Car? Staff

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Britains car makers will hold talks with Business Secretary Lord Mandelson and Transport Secretary Geoff Hoon, in a bid to halt Vehicle Excise Duty road tax rises.

Motor industry bosses want the Government to scrap changes to Vehicle Excise Duty rates that are set to be introduced in April. The changes will expand the number of charging bands and result in owners of high-emitting vehicles paying up to double the rate they currently do.

Manufacturers say the changes could cost them sales and threaten jobs.

In addition, car makers want the Government to give incentives to companies to encourage them to renew ageing car fleets.

David Smith, chief executive of Jaguar Land Rover, told the Sunday Times: 'Not only would it help stimulate demand, but it would get more fuel-efficient cars on the road.'

Useful links
VED road tax rates

VED road tax: the future

VED road tax: why it pays to plan ahead

VED road tax: who will pay more?