27 November 2008
The government has shelved plans to introduce steep increases in vehicle excise duty (VED) in an effort to ease the pressure on struggling consumers.
In his pre-budget report, chancellor Alistair Darling said increases of up to £230 will be put on hold and tax hikes will be capped at £5 for the most polluting cars.
For motorists, this will bring some relief following large rises in the cost of motoring - including petrol prices and car insurance.
Mr Darling did, however, confirm that the government intends to press ahead with the introduction of a new first-year rate of VED.
He said the measure is designed to encourage drivers to purchase less polluting cars, which as well as saving on VED will also allow them to save on petrol costs and potentially secure cheaper car insurance premiums.
Commenting on the shelving of large VED increases, Faye Sunderland, editor of TheGreenCarWebsite.co.uk, said it will "give temporary but much needed relief to those car-dependant, lower income families".