21 Mar 07 17:39
Chancellor Gordon Brown gave a clear message to Britain's motorists in today's Budget: go green or it'll cost you.
What's likely to be his final Budget before moving next door to 10 Downing Street included a package of measures with the consistent aim of encouraging drivers to opt for cleaner, less thirsty vehicles.
The few clean-running cars classed as Band B have had their road tax cut from £50 to £35. Cars in the highest emissions band will be paying £300 this year, with a further rise to £400 next year.
This October, fuel duty goes up by 2p a litre, followed by another 2p rise next year and a 1.8p increase in 2009. The differential between petrol and diesel has been scrapped, reflecting improvements in diesel emissions, while biofuels keep their tax advantage.
The RAC Foundation welcomed the delay in fuel duty increases, because it meant some buyers would be able to make a greener choice for their next car.
Executive director Edmund King said: 'Cars are getting cleaner and greener and whilst motorists will not be pleased with more price increases, longer term incentives to go green are welcome. There will also be relief that the proposed fuel duty increase has been deferred.
'Drivers and manufacturers need time to change their vehicles. Reduced tax for cleaner vehicles is a great incentive to help motorists choose the most environmentally friendly model suitable for their needs.'
In his Budget statement, Gordon Brown said: 'Transport accounts for a quarter of emissions: our objective for Britain is the lowest carbon cars using the least polluting fuels.
'Average new car emissions are today around 167g/km of carbon dioxide. A medium term objective is 100 grams. We want Britain to lead in developing the next generation of low- and no-carbon vehicles and fuels. And to report on this the transport secretary and I have invited Sir Nicholas Stern and the Vice Chancellor of Aston University, Professor Julia King, to report to us on the energy saving potential of innovation in this area.'
See Channel 4 News for more on the Budget
