8.7 million to pay more in the new road tax reforms
July 10, 2008
The Government has confirmed more than 9 million people will pay more road tax under the new controversial tax reforms.
43% of motorists will have increased bills of £245 by April 2010 and only a fifth of drivers will be better off in the long term.
Ministers are insisting the new measures are aimed at cutting pollution and not to raise revenue. However, experts have calculated that more than a billion pounds extra revenue will be taken by 2011.
Treasury minister Angela Eagle has hinted that drivers may be offered cash by the government to have their old gas guzzling cars scrapped – rather than selling them on to other drivers.
She said experts believed that in 2009-10 “a third of cars will be better off in real terms, and in total, approximately 55% of cars will be no worse off”. However, it is predicted that a little more than 44% - 8.7 million drivers in the six most polluting bands, will pay more.
By 2010/11 it is expected 9.4 million will be paying higher bills.
