Thursday, 3 July 2008

Rebel MPs are promised changes to road tax reforms

Philip Webster and Siobhan Kennedy

The Government is expected to climb down on its controversial plans to impose retrospective charges as part of its road tax shake-up.
It is understood that promises of changes to the scheme, which is designed to penalise drivers of high-polluting vehicles, persuaded Labour MPs to back away from a revolt.
In the end only six Labour rebels voted with the Conservatives to end retrospective charge, which will affect people who bought cars after 2002, although at least 50 had voiced their concerns. But MPs have warned ministers that if Alistair Darling, in his PreBudget Report in the autumn, failed to make the changes, the plans would almost certainly be defeated later in the year.
Angela Eagle, Exchequer Secretary to the Treasury, who had denied that the plans were retrospective, told worried MPs that she had been listening closely to their views. There were no “easy solutions”, she said.

Behind the scenes, MPs had received far stronger private assurances from the whips that the matter would be “sorted”.