Car tax rises leading to confusion and anxiety

In the wake of the latest Budget announced by thepetrol-electric hybrid, Smart car 0.7 litre petrol, Citroen
Chancellor of the Exchequer, there is growingC2 1.4 litre diesel and the Ford Fiesta 1.4 diesel. Band C
confusion about which cars will be clobbered for more(cars which emit between 121-150g/km) includes Fiat
tax according to one of the UK’s leading carPanda 1.2 petrol, Ford Ka 1.3 petrol, VW Golf 1.9 TDI
insurers. Swinton Car Insurance is concerned that thediesel, Ford Focus 1.8 TDCi diesel hatchback and the
latest wave of car tax rises outlined by Gordon BrownJaguar X-type 2.0 diesel saloon. Band D (cars which
is leaving drivers unsure about which category theiremit between 151-165g/km) includes the VW Passat
car fits into and whether their vehicle is one of theestate 1.9 TDI diesel, MINI One hatchback 1.6 petrol,
heaviest polluters. The Manchester-based insuranceFord Fiesta 1.6i petrol and the Peugeot 307 1.4 petrol.
company believes that the vast majority of drivers ofBand E (cars which emit between 166-185g/km)
family saloon type vehicles are unsure where their carincludes the Ford Mondeo saloon 1.8i petrol, Vauxhall
fits on the pollution scale and how much it is costingVectra 1.8 petrol saloon, Rover 75 1.8 petrol and the
them. But, more alarmingly, an increasing number ofToyota Avensis 1.8 petrol saloon/hatchback. Band F
drivers are getting worried that they may unwittingly(cars which emit between 186-225g/km) includes the
be falling into Vehicle Excise Duty (VED) bandingLand Rover Freelander 2.0 diesel, Toyota RAV4 2.0
brackets which are becoming demonised for beinglitre petrol, Audi A4 1.6 petrol, BMW 5 series estate 3.0
so-called gas guzzlers. Jon Kirk of Swinton Insurancediesel and the Mazda MX5 2.0 petrol. Band G (cars
said that it is all very well the Chancellor raising car taxwhich emit more than 225g/km) includes the Jaguar
for the heaviest polluting vehicles and lowering it forX-type 2.0 petrol saloon auto, Porsche 911 Carrera
the most environmentally friendly cars, but the simpleCoupe 3.6 litre petrol, Renault Espace 2 litre petrol
truth is very few people actually know which of theRange Rover 4.4 V8 petrol auto and the BMW X5 4.8
seven A-G bandings their cars fall into. “It came aslitre petrol. Simply by making these examples known,
no surprise that the Chancellor put up car tax on theSwinton Insurance hopes to put drivers at ease
heaviest polluting vehicles in the latest Budget,” saidbecause they have a better framework to work from
Jon. “And most people know that 4x4s are thewhen trying to establish how much more they are
worst polluters on UK roads, but that’s not thegoing to have to pay each year in car tax. “The
whole story.” As he points out, figures from thebiggest problem is that most motorist have little idea
Society of Motor Manufacturers and Traders revealedhow much the increases announced by Gordon
that the worst polluting band only accounted for 7.5Brown are actually going to cost them until they
per cent of all new cars sold in 2006. At the other endreceive their car tax renewal notices,” said Jon.
of the scale the number of cars which fall into the first“And given the Chancellor’s timescales, some
two bands only accounts for 4.7 per cent of cars.people won’t feel the full effect of his
“This means that nearly 90% of cars on UK roadsannouncement for another 12 to 18 months.” While
fall into just four of the seven bands,” said Jon.there are losers who will have to pay more car tax
“So you can see where the concern is arising asbecause of the Chancellor’s announcement, there
there seems to be a huge mid-ground where ownersare also winners. Drivers of cars in Band B will see
of typical family cars can’t be sure where on thetheir road tax bills cut by £15 to £35. But this will
scale they are in terms of carbon emissions.”only be short-lived because the Chancellor also said
Swinton Insurance points to a list of examples of carsVED will rise by £5 for each of the next three years.
in the different bands to try to help clear up some ofDrivers of petrol cars also face an extra hike because
the confusion. Band A (cars which emit less than 100gGordon Brown said he will be aligning the differing
km) includes the Honda Insight petrol electric hybrid andrates between petrol and diesel cars to the higher
the Smart diesel. Band B (cars which emit betweendiesel rate.
101-120g/km) includes the Toyota Prius 1.5 litre