'Green' car tax will hit poorest hardest

New "green" car taxes will hit hundreds of thousands of the poorest families, new figures show, as Labour backbenchers told the Government it was heading for a repeat of the 10p tax revolt.
About 400,000 of the lowest earners will pay an average of £80 a year more following changes to Vehicle Excise Duty (VED), according to calculations based on official Treasury data. Of those, 140,000 will pay at least £100 a year more in car tax and for some, bills will increase by up to £245.

This means that in total, Britain's poorest families - defined as those on an income of £15,000 or less - will pay a total of £32 million extra in VED in the next two years.

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