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ATTEMPT TO BLOCK CAR-TAX RISES DEFEATED - DVLA

THE UK Government yesterday comfortably avoided a Commons defeat over controversial plans to increase car tax on the most polluting vehicles by up to £455.

A Tory bid to amend the Finance Bill to stop the change was rejected by 303 to 240, a government majority of 63.

Tories labelled Chancellor Alistair Darling’s vehicle excise duty plans “unfair and ineffective” and claimed poorer families would be hit hardest by the change. The proposals have also worried Labour backbenchers, with almost 50 signing a Commons motion branding the changes “retrospective” because they will apply to all cars registered since March 2001.

But Exchequer Secretary Angela Eagle branded the Tories’ proposal “undesirable, unworkable and downright peculiar”. She said multiple systems of the duty would cause a “severe administrative headache” for the DVLA.

Ms Eagle told would-be Labour rebels she had listened to their views, and ministers were examining ideas put forward to help hard-pressed motorists and hauliers but acknowledged there were no “easy solutions”.

Shadow treasury minister Justine Greening said the Conservatives did not have a problem with graduated duty linked to the level of pollution of cars. “What we do have a problem with is ineffective green taxation that is nothing to do with the environment and is everything about eco stealth taxes,” she said.

The Treasury’s take from the rising costs of duty would increase from £1.9billion in 2006 to £4.4billion in 2010 when the measures are fully implemented, she told MPs.



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