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Road-tax increases unfair, says MP

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Unfair road-tax increases will add to rising petrol prices and car insurance premiums as the cost of motoring continues to grow, says an MP.

According to shadow exchequer secretary David Gauke, retrospective changes to vehicle excise duty will impact on owners who had bought their cars in good faith.

He claims that they will be hit with a "tax bill they didn't anticipate" despite Government changes to a proposed rise in car tax.

He pointed out that a public outcry has forced the Government to rethink changes to tax bands that would have meant rises of over £200 for 1.2 million drivers, with many others also paying more.

But treasury spokeswoman Angela Eagle said that increases of no more than £5 per car next year and £30 in 2011 would result from the new measures.

But said Mr Gauke: "If someone has bought a car that was made after 2001 or registered after 2001 and then subsequently finds that they will be paying more vehicle excise duty in future years, they are as it were committed to that car, stuck with that car in a way, and are faced with a tax bill that they didn't anticipate."

© Press Association 2009