|14 May 2008.
For immediate release.
"The new rates impact owners of less efficient vehicles built since 2001. Owners of such cars face a choice: Either they sell their car at a drastically reduced price, sometimes scrap value for older, high mileage cars that nobody will want to pay £270 - £440 pa to tax, or they keep them and pay the higher taxes. If they keep the car then there is no impact on emissions. However many drivers may choose to sell. Ultimately and inevitably this will lead to such cars being scrapped far sooner than under the old VED regime, often when they are still perfectly serviceable. Now, clearly as inefficient cars get older they are very unlikely to be used by high mileage drivers who choose more efficient models. They tend to be in the hands of low mileage drivers. Therefore inefficient old vehicles are rarely great emitters. But encouraging their replacement with newer stock means CO2 is produced in production of the new vehicle. Put simply, the replacement of the cars affected that generally do low mileages with new cars will produce more CO2 than it saves."ABD chairman Brian Gregory said:
"Alastair Darling must now quantify how the backdating of draconian VED increases on family cars to 2001 can possibly reduce emissions. If he cannot justify these increases then the tax that is hammering poorer families and the elderly must be scrapped. The government claim they are now listening. Let's see some evidence"