Thursday, May 01, 2008

Heads - they win; Tails - you lose!

So you thought that the budget VED increases were well thought out and even good for the environment?

Errrm, no, not in the least. This from TimesOnline highlights the way that our Gov has "quietly abolished the exemption from higher road-tax rates for cars that emit more than 225g of CO2 per km and were registered between March 2001 and March 2006."

So what's the problem you ask?

Well, there are a lot of poorer families out there with older vehicles who will now be considerably worse off. The chancellor reckoned that an average family (how I hate that stupid phrase!) on ~£28.000 p.a. would be better off by some £130 a year. But those with vehicles that fall into the back-dating trap will be paying an extra £220 in VED!

And, probably even worse, similar vehicles registered before 2001 will almost certainly now become worth a lot more than the same model registered after 2001.

“Poorer families who need a bigger car to transport children and luggage will find their car has lost up to £1,000 of its value. They face an impossible choice because many will struggle to pay the higher road tax but won’t be able to afford to buy a more fuel-efficient car with a lower road-tax rating.”

So, rather than helping the environment the back-dating is going to force a lot of poorer people to be worse off, whilst those with vehicles registered prior to 2001 will be forced to continue to run their older high emissions vehicles for as long as possible!

I reckon that this is just yet another green tax grab that was poorly disguised as a sop to the environment!

1 comment:

Emma said...

It's not like their credibility on 'doing the right thing' by the planet is exactly at an all time high at the moment.

In fact every carbon footrprint they leave is usually in their mouths... or a less than tolerant electorate's rear ends.

Bad enough, but when they claim to 'feel our pain' but it's for our own good it sticks in the craw... especially when topped by the allowances that protect them from any impacts.

We as a family are now £80 worse off. But as you point out our 2nd-handers are now worth diddly squat.

But is being forced to scrap a car to get a new one really the answer... environmentally? There are several years and a few tens of thosuands of miles more before they need to be crushed. And the mileages and emissions are not that bad, still, though the fuel costs certainly would make a new purchase almost essential if we were planning to lay down some serious mileage.