Road tax

The cost of taxing a family car could increase by as much as £1,500 if a new plan put to the Government is accepted. The proposal suggests the huge hike to force people to switch to lower-emissions vehicles.

This is among a range of stringent measures put forward by a committee headed by Professor Julia King from Aston University, Birmingham. They aim to reduce carbon dioxide emissions in the UK by at least one-third within the next decade.

But it’s not all punishment – Prof King’s plan also suggests offering grants to people buying ultra-frugal, low-emissions vehicles. The report, which was completed in time for Chancellor Alistair Darling’s March budget, recommended that models powered by rechargeable electric batteries were the best option.

King conceded the Government might find it politically difficult to accept all the ideas. But her findings on price are supported by the Dep­artment for Transport. Its studies suggest the difference between each road tax band would have to rise to £300 to persuade drivers to move down a bracket. At present, Band E tax costs only £40 less than Band F.

But Edmund King of the RAC Foun­dation argued: “Many families need big cars; it’s unfair to penalise them. And it can be ‘greener’ for a low-mileage driver to run a larger vehicle than switch to a hybrid.”