Young Driver
Gordon goes green
Thu, 23 Mar 2006
Chancellor Gordon Brown's budget has given motorists a good reason to go green.
Drivers of vehicles with the lowest emission will pay no road tax, while the most polluting cars will pay £210 a year.
The chancellor said: "I am introducing, to take effect tomorrow, a zero rate for a small number of cars with the very lowest carbon emissions which will pay no duty at all; and instead of £75 for cars with low emissions, significantly lower rates of £40.
"Duty rates from today will be zero, £40, and then £100, 125, 150, 190 up to a new band of £210 for the small number of new cars that are the most polluting, 1 per cent of all cars."
He explained that this would help pay for five million more fuel efficient cars to have their duty cut.
The result of the move will be that 50 per cent of cars will have their tax cut frozen or reduced
He added: "Instead of just 300,000 motorists paying £100 a year or less, three million will now pay £100 or less. "
Mr Brown also decided to hold off any rises in fuel tax.
He said: "For the fourth successive budget, because of high and volatile prices in the oil market, I propose to defer the usual inflation increase until September 1st."
Reducing your motoring expenditure can also be done by choosing a specialised insurance policy, such as one aimed at young drivers, women drivers or convicted drivers.
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