Articles | Road tax revolt brewing

Road tax revolt brewing

Published: Monday, 26 May 2008, 10:54PM

Gordon Brown is facing another damaging rebellion by Labour MPs over tax.

More than 30 backbenchers have urged Chancellor Alistair Darling to re-think plans announced in the Budget for increases in vehicle excise duty on "gas guzzling" cars.

Vehicles bought before 2001 are exempt but MPs are concerned some owners who have bought bigger cars since then could be faced with increases of up to £200.

Labour MP Ronnie Campbell, who tabled the motion, warned the impact of the increases would be similar to scrapping the 10p tax rate, a move that sparked a backbench revolt and a £2.7 billion climbdown from Mr Darling earlier this month.

Mr Campbell said: "It is unfair on people who bought their cars a few years ago not knowing that the Government were going to put this road tax on.

"When people get their road tax letter through the door next year and find they have got an extra £200 to pay."

He added: "The motorist is taking the brunt again."

Mr Campbell also called on Mr Darling to drop the planned 2p increase in fuel duty due in October, saying: "I think people just at this moment can't afford it. They really are feeling the pinch."

But analysts say the £2.7 billion emergency compensation package for people hit by the abolition of the 10p rate has left the Chancellor virtually no room for manoeuvre with the public finances.