Gas-guzzlers targeted in Budget
- 00:02:40
- ITN
Gas-guzzlers targeted in Budget
Drivers of "gas-guzzlers" paid the price in Alistair Darling's first Budget as Chancellor.Mr Darling set out plans to overhaul the Vehicle Excise Duty system and introduce a new "showroom tax" to hit the drivers of the most polluting vehicles.The Chancellor said the changes from April 2009 should encourage manufacturers to produce cleaner cars and by introducing new tax bands, encourage drivers to choose the least polluting car.And as a second stage for new cars, from April 2010 there will be a new first-year rate based on carbon dioxide emissions of the car.Cars that emit less than the proposed 130 grams per kilometre European standard of carbon dioxide emissions will pay no car tax at all in the first year.But a higher first year rate will be introduced on the most polluting cars.Mr Darling said: "It is right that if people choose to buy a more polluting car that they should pay more in the first year to reflect the environmental cost."There was also a warning that he would legislate next year to impose a charge on disposable plastic bags unless the retailers took action to curb their use.But a planned 2p increase in fuel duty due to come in April would be delayed.Mr Darling also announced the biofuel duty differential will be replaced by the Renewable Transport Fuel Obligation.And capital allowances for business cars would be reformed to increase the incentive to move to lower emitting cars.Mr Darling announced that £26 million will be made available next year for a Green Homes Service and also pledged to roll out smart meters to medium and large firms over the next five years.He announced that new non-domestic buildings will become zero-carbon from 2019.The Climate Change levy will increase in line with inflation from April.He said: "We recognise the contribution of aviation to the UK economy. That is why we support the expansion of Stansted and Heathrow."But he added the industry must meet its environmental costs and "that is why we want aviation in the European Union Emissions Trading Scheme".He announced revenue from plane duty will be increased by 10 per cent in the second year of operation because of the growth in flights.Mr Darling said he was asking the European Commission today to set a tighter target which reduces the cap on emissions from cars from 130 grams per kilometre of carbon dioxide to 100 grams per kilometre of carbon dioxide by 2020.© Independent Television News Limited 2008. All rights reserved.
ITN | March 12, 2008
