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Last Modified: 04 Jun 2008
By: Channel 4 News

The first PMQs since Labour's defeat in the Crewe by-election - and car tax is top of the agenda.

The claim

"The majority of drivers will benefit from this proposal [to change car tax rates so polluting cars pay more]."
Gordon Brown, PMQs, 4 June 2008

The analysis

That's not quite the official line - the government reckons the majority of drivers will benefit, or stay the same, next year (in 2010, the tax regime kicks in fully with an additional "showroom" tax for new cars).

And we know that the majority in this case is "55 per cent" - the kind of number Brown wouldn't sniff at getting in a general election, but still meaning that 45 per cent of drivers would, by extension, lose out.

That said, many of those who lose out would be hit to the tune of just a fiver a year - not necessarily an increase once inflation has been taken into account.

See our full-length Factcheck on the subject for more on the issue.

And there's more today...

The claim

"He says that next year half of all motorists cars will be better off or the same - that's what he's just said."
David Cameron, PMQs, 4 June 2008

The analysis

Oh no he didn't. Brown spun things as being even better than that for drivers, as the quote above shows.

The claim

"24 of the 30 top models that are the most popular models will have the same or a lower tax because of it."
Gordon Brown, PMQs, 4 June 2008

"He is treating the Ford Focus, for example, as one model. In fact there are 40 models of the Ford Focus ... only three of them are better off."
David Cameron, PMQs, 4 June 2008

The analysis

Car tax is indeed more complicated than Brown suggests. Car nerds may wish to cast their eyes over the full tables detailing the emissions of UK cars here.

According to these there are indeed 40 Ford Focuses; think three door, four door, five door, estate, saloon, automatic or manual, diesel or petrol to get an idea of why there are so many variations.

But life in Focus world isn't quite as taxable as Cameron suggests.

Of the 40, 11 emit less than 140g/km of CO2, and so would see their car tax go down next year and be no worse than the present situation the year after. A further six emit less than 150g/km of CO2, and so will pay the same tax next year and just £5 more a year in 2010-11.

The claim

"When is the PM going to learn that new green taxes should be offset one for one by cuts in family taxes?"
David Cameron, PMQs, 4 June 2008

The analysis

According to the treasury, the reforms to vehicle excise duty are expected to bring in £465m in 2009-10 and £735m the year after.

But at the same time, the government will pay out £340m next year and £350m the year after for a £50-a-year increase in child tax credit.

It's also putting child benefit up to £20 a week which will cost £210m then £170m respectively.

A tax credit is not technically a tax cut, although it does have the same effect, in a more convoluted way, of reducing the amount of tax poorer and middle-income families pay.

And an increase in child benefit is, well, a benefit rather than a tax cut.

But together they add up to £630m next year and £520m the year after, so putting all but £50m of the £1.2bn clawed in from the new fuel duty changes directly back into families' pockets.

We're not trying to say that Brown has done what Cameron asks. Tory tax policy, such as it is, involves a ring-fenced "family fund" to pay back any additional revenue raised from green taxes.

The budget includes other increases in "green taxes", and it's arguable how helpful this kind of "budget isolation" is; how much of a tax increase on, say, alcohol, affects families?

All in all a complicated picture, and one we'll be watching closely as and when more concrete Tory proposals are unveiled.

The claim

"I think that people know that oil was $11 a barrel 10 years ago; it is now $130 a barrel."
Gordon Brown, PMQs, 4 June 2008

The analysis

The oil price did top $130 in May. Now it's below $124 a barrel. Not the first time Brown's got his barrel prices confused in PMQs.

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