Friday, May 30, 2008

How many drivers will new car tax rules affect?

Fact check from Channel 4 !!!

How many drivers will new car tax rules affect? Labour says the majority will be no worse off; the Tories say otherwise.

The claim

"Nearly 18 million motorists will be hit with above-inflation increases in their annual road tax ... the changes to the vehicle excise duty will affect nearly seven in 10 of the country's 26 million drivers."
Daily Telegraph, 27 May 2008, based on figures provided by the Conservative party

The verdict

There's no denying the new measures will pull some of the most polluting cars into a higher tax band - to the tune of a couple of hundred pounds in just one year, in some cases.

But it's also worth noting that many of the "rises" are actually only to the tune of a fiver. Not necessarily even a rise in real terms, once inflation is taken into account.

Based on treasury figures, in 2009-10 FactCheck reckons around 9.73 million of the 17.67 million post-2001 cars on the road will be the same, less, or just £5 more in car tax than this year.

The sources

The Telegraph, 18m face above inflation increases in car taxes
Budget 2008
Hansard, 14 May 2008