Car credit consumers dismayed at road tax announcement

Vehicle excise duty (car tax) changes due to come into force next April have caused yet another crisis for the Government. Figures released by The Treasury have shown that 43% of car credit customers and other motorists will have to pay up to £245 a year more after the changes. This has prompted the Tories to accuse the Government of misleading the public over the changes. Conservative MP Andrew Mackay asked the chancellor why Gordon Brown had said "the new road tax proposals would benefit the majority of motorists, when figures just published by the treasury make clear that that was patently untrue." Mr Brown insisted: "Our policy is fair to those people who have the least polluting cars." However, the Government does not even have the support of environmental group Greenpeace, because the tax changes will affect cars bought as long ago as 2001. Alistair Darling backed the Prime Minister, claiming that Gordon Brown had said on many occasions that "the majority of motorists would either gain or be no worse off". Motoring groups and Labour backbenchers are amongst other critics of the changes, not to mention a substantial percentage of the general public: particularly those who have bought their vehicles using car credit and will now face extra costs associated with their vehicles.

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