Campaigners have described Chancellor Hammond’s hike for diesel car drivers as vindictive.
Despite being frozen for seven years, fuel duty for in the UK is one of the highest in the EU and the rest of the world.
But now Hammond has |announced a new car tax reform which targets diesel motorists.
The Chancellor said in his Autumn Budget speech that diesel cars would face higher VED car tax charges for the first year from April 2018. Diesel supplement in company car tax will also increase by one per percent.
Next generation cleaner diesels will be able to swerve this charge when meaning that the next generation diesel cars will not face car tax increases.
The increase to car tax will go into a £220 million clean air fund.
Howard Cox, founder of the FairFuelUK Campaign, had called the drive to raise money from diesel owners a “vindictive method to improve air quality” that will “fleece drivers”.
He said: “Out of touch London based politicos see UK’s 37 million drivers as pure cash generators, picking on innocent diesel owners is a flawed, green based evidence excuse to simply raise more cash – not to improve air quality.”
By hiking the tax, the government hopes to stop motorists buying diesel cars, which are now thought to be worse for the environment. This is a major blow as Tony Blair’s last government actively campaigned to get people to go diesel.
Diesel drivers already pay 122.4p per litre, a year-on-year rise of 3.65p. But growing oil prices could see fuel increase by 10p a litre by the end of the year.
Robert Halfon MP, chair of the APPG for Fair Fuel for Motorists and Hauliers, said:
“The unwarranted war on motorists has got to end: high fuel duty hits all our economy: motorists, businesses, food prices and the cost of public transport.”
The Chancellor was expected to introduce a number of new measures designed to discourage diesel drivers from using their vehicles, because of nitrogen oxides emissions and particulates.
These emissions are thought to contribute to the premature deaths of 40,000 people in the UK each year.
A number of measures have been introduced to begin to restrict the use of diesel cars in areas of Britain, such as the toxic T-Charge in , which requires drivers of the oldest and most polluting diesels to pay a daily fee while driving in the congestion charge zone.
AT A GLANCE:
GDP downgraded to 1.4%, 1.3% and 1.5% in subsequent years before going up to 1.6% in 2021-22
Another 600,000 people forecast to be in work by 2022
£3bn to be set aside over to prepare UK for possible outcomes of preparing to leaves EU
Borrowing forecast to fall in every subsequent year from £39.5bn in 2018-19 to £25.6bn in 2022-23
Tobacco will rise by two per cent above Retail Price Index inflation
Duty on beer, wine, spirits and most ciders will be frozen
Duty on high-strength “white ciders” to be increased via new legislation
Tax-free personal allowance to rise to £11,850 in April 2018
Higher-rate tax threshold to increase to £46,350