Road tax hikes to hit 9m motorists

More than 9 million motorists look set to be hit with higher road tax under reforms pushed through by the Government.Ministers have admitted that 43 per cent will see their bills rise by up to £245 by April 2010, compared with fewer than a fifth who will be better off in real terms.It is the first time official estimates have been disclosed of winners and losers from the changes - which ministers insist are designed to punish high-polluting cars rather than raise revenue.The figures emerged as Treasury minister Angela Eagle hinted that drivers may be offered cash to scrap their ageing gas-guzzlers rather than sell them on.They predict that tax will be increased on 8.7 million vehicles in 2009-10 - all in the six most-polluting bands.Experts calculate that the Exchequer will have received more than £1 billion in extra revenue by 2011.The AA said the disclosure "confirms our worst fears" while shadow chancellor George Osborne accused Prime Minister Gordon Brown of misleading Parliament over the information.Mr Osborne said: "Gordon Brown appears to have misled Parliament. He said that the majority of drivers would benefit from the changes to VED.""Now even the Treasury has admitted that just a third of drivers will be better off in 2009, dropping to less than 20 per cent in 2010."This destroys the Government's defence that this is a green tax and in general gives green taxes a bad name."

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ITN | July 10, 2008

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